MADE STRONG

DR. MARTENS PLC

ANNUAL REPORT 2024

MADE STRONG

SINCE 1960.

Reflecting on a year of challenges, we stand firm

in our belief that our fundamentals remain strong.

Despite macroeconomic shifts, our commitment to

building on our brand has remained unwavering.

As we look forward to the year ahead, we will focus on

relentless product innovation, compelling product marketing

and expanding brand engagement across our key markets.

Alongside this we will be laser-focused on cost efficiency

and driving savings where possible.

STRATEGIC REPORT

Highlights 1

A strong sense of purpose 2

At a glance 4

Chair’s Statement 6

CEO’s Statement 10

Market review 14

Our business model 16

Stakeholder engagement and

Section 172 Statement 18

Our strategy 22

Our strategy in action 24

Key performance indicators 30

Finance Review 32

Risk management and our principal risks 38

Viability assessment and going concern 44

Sustainability 46

Our TCFD disclosures 75

Non-financial and sustainability

information Statement 84

GOVERNANCE

Chair’s introduction to governance 86

Governance at a glance 90

Board of Directors 92

Governance Report 96

Global Leadership Team 100

Our stakeholders 101

Our culture 106

Nomination Committee Report 108

Remuneration Committee Report 116

Remuneration Report 119

Audit and Risk Committee Report 134

Directors’ Report 144

FINANCIAL STATEMENTS

Independent Auditors’ Report 150

Consolidated Statement of Profit or Loss 160

Consolidated Statement of

Comprehensive Income 161

Consolidated Balance Sheet 162

Consolidated Statement of Changes in Equity 163

Consolidated Statement of Cash Flows 164

Notes to the Consolidated

Financial Statements 165

Parent Company Balance Sheet 208

Parent Company Statement

of Changes in Equity 209

Notes to the Parent Company

Financial Statements 210

ADDITIONAL INFORMATION

Five-year financial summary (unaudited) 217

First half/second half analysis (unaudited) 219

Glossary and Alternative

Performance Measures (APMs) 220

Shareholder information 222

Company information IBC

drmartensplc.com

Dr. Martens plc

drmartensofficial

EBITDA

£m

£197.5M

Constant currency: £205.7m

2023: £245.0m

Launched new brand platform

MADE

STRONG

Product

Launch of our authorised

REPAIR

service in the UK

PBT £m

£93.0M

2023: £159.4m

Wholesale revenues down

28%

People

100%

of our Tier 1 and Key Tier 2 suppliers

CSR audited met our high standards

Pairs m

11.5M

2023: 13.8m

Direct-to-consumer (DTC)

revenue up 2%

£533.1M

Planet

Sourced

93.5%

of the electricity for our EMEA and UK

operations from renewable sources

Revenue £m

£877.1M

Constant currency: £904.7m

2023: £1,000.3m

TRANSFORMATION

OF OUR NORTH AMERICAN

DISTRIBUTION CENTRE NETWORK

Product

Launch of our

RESALE

platform in the USA

FINANCIAL HIGHLIGHTS

OPERATIONAL HIGHLIGHTS

SUSTAINABILITY HIGHLIGHTS

1. EBITDA – Earnings before exchange gains/losses, finance income/expense, income tax,

depreciation and amortisation.

1. Audit results above 75% scoring for Tier 1, and above 70% for Key Tier 2, in line with

Intertek Workplace Conditions Assessment scoring methodology.

HIGHLIGHTS

STRATEGIC REPORT

1DR. MARTENS PLC ANNUAL REPORT 2024

AT A GLANCE P4 OUR STRATEGY P22

What we stand for

Our purpose is to empower

Rebellious Self Expression.

Our responsibility is to act as brand

custodians. Our aim is to deliver

long-term value for the business.

This is where Dr. Martens is

heading. This is what we’re working

towards together.

What we do

The business is focused on executing its tried and tested

DOCS strategy:

DIRECT-TO-CUSTOMER FIRST

 Weaimtobuildbrandequityanddrivemarginexpansion.

ORGANISATIONAL AND OPERATIONAL

EXCELLENCE

 Weareinvestinginandimprovingourorganisation,

operationsandITtoenablegrowthandunlockvalue.

CONSUMER CONNECTION

 Wearefocusedonacquiringnewconsumers

anddrivingloyalty.

SUPPORT BRAND EXPANSION WITH B2B

 WeaimtomanageB2B,whichismadeupofwholesaleand

distributors,holisticallyandpurposefullytosupportourbrand.

A STRONG SENSE OF PURPOSE

WHAT WE’RE

WORKING

TOWARDS

2 DR. MARTENS PLC ANNUAL REPORT 2024

TOGETHER

STAKEHOLDER ENGAGEMENT P18 SUSTAINABILITY P46

ENVIRONMENT &

COMMUNITIES

SUPPLIERS

PARTNERS

OWNERS

OUR PEOPLE

CONSUMERS

Who we work for Why we do it

Therearethreecorevaluesattheheartof

RebelliousSelfExpression.Theynever

standalone,butworktogethertosupport

whatRebelliousSelfExpressionisfor

Dr.Martens.Ourvaluesare:

BE YOURSELF

 Wewantourpeopletodowhattheyare

brilliantat.Beingthemselvesistheir

superpowerandit’sthevaluetheybring

toworkeveryday.

ACT COURAGEOUSLY

 Wewantourpeopletotrynewthings,let

othersseeoursuccessesandmistakes,

sowecanalllearn.

SHOW YOU CARE

 Ourpeopleshouldthinklikeanownerto

advancethebrandfirstandcollaborate

acrossfunctionsandregions.

Dr.Martensisfocusedondeliveringsustainable

andprofitablegrowthtodrivelong-termvalue

forthebrandanditsshareholders:

3DR. MARTENS PLC ANNUAL REPORT 2024

STRATEGIC REPORT

INVESTMENT CASE: OUR UNIQUE PROPOSITION

Webelievethatourcompetitivestrengthsarewhatsetusapartandpositionustosucceedinarapidlychangingworld.

MAIN-LINE AMP

Originals

40% 5%

Fusion

36%

Casual

11%

14XX

<1%

Collabs Archive & Made In England

ICONIC, GLOBAL BRAND

TheuniqueDNAofthe1460

bootispreservedacrossall

ourproducts,sittingatthecore

ofourproductstrategy.

BRAND-FIRST DTC-LED

STRATEGY

OurDOCSstrategyisabout

sellingtomorepeople,through

ourowndirect-to-consumer

(DTC)channel.

SIGNIFICANT MARKET

OPPORTUNITY

Weareaglobalbrandwitha

focusonsevenprioritymarkets

–UK,USA,Japan,Germany,

Italy,FranceandChina.

AT A GLANCE

OUR UNIQUE DNA

Ourproductrangeiscentredonouroriginalsandmadeupoftwogroups,main-lineandAMP.

Kids (4%)

Accessories (4%)

A GLOBAL

74%

brandawareness

15%

averageannualDTCrevenue

growthsinceFY20

85%

ofrevenuesfrom

prioritymarkets

4 DR. MARTENS PLC ANNUAL REPORT 2024

Owned and operated Owned and operated

Distributors

Owned and operated

Distributors

APPEALING TO A BROAD

CONSUMER BASE

Abalanceddemographicmix

ofconsumersacrossallmetrics,

includinggender,age,income

levelandgeography.

1. The remaining 1% are those that don’t identify as male or female.

ROBUST FINANCIALS

Thebusinessgeneratesa

stronggrossmarginandis

highlycashgenerative.

CUSTODIANSHIP CULTURE

Dr.Martensculturehas

‘custodianship’atitscoreandwe

arecommittedtostandingbyour

beliefinleavingthingsbetterthanwe

foundthemforthenextgeneration.

SEE MORE ONLINE

DRMARTENSPLC.COM/INVESTORS/INVESTMENT-CASE

OUR MARKETS

OurDOCSstrategyisaboutsellingmorepairsofboots,shoesandsandals,

tomorepeople,throughourownDTC,inoursevenprioritymarkets.

EMEA AMERICAS APAC

OWN

STORES

102

2023:8

THIRD-PARTY

STORES

–

2023:3

DTC MIX

+8%pts

2023:+4%pts

OWN

STORES

2023:54

THIRD-PARTY

STORES

2023:4

DTC MIX

+8%pts

2023:+1%pts

OWN

STORES

2023:62

THIRD-PARTY

STORES

2023:112

DTC MIX

+10%pts

2023:+4%pts

£431.8M

revenue

2023:£443.0m

£325.8M

revenue

2023:£428.2m

£119.5M

revenue

2023:£129.1m

BRAND ICON

43/56

male/femalesplit

averageannualrevenue

growthsinceFY20

FY40

Net-ZerotargetbyFY40

STRATEGIC REPORT

5DR. MARTENS PLC ANNUAL REPORT 2024

In last year’s Annual Report

I shared my disappointment

that, whilst we’d reached £1bn

of revenue, growth had been

below expectations and we’d

made execution mistakes

which had impacted our

performance.

TheweaknessintheAmericas

performanceisinpartduetothewholesale-

reliantnatureofthisbusiness,whichhas

meantthatwidespreadcautionfrom

wholesalecustomershashadasignificant

impact.I’dcontrastthiswithourJapanese

business,whereDTCaccountsforthe

significantmajorityofourrevenueandwe

hadamuchstrongerperformance.Aswe

looktoFY25andbeyond,wemustensure

thatwebuildbackinamoreresilientand

sustainableway,withtherightbalance

ofwholesalepartnersandaDTC-first

approach,toreducetheimpactoffuture

wholesalecycles.

FY24hasbeenanotherdisappointingyear,

withachallengingconsumerenvironment

intheUSA,particularlyinourcoreboots

category,combinedwithourbrand

implementationinthismarketnotbeing

asstrongasitshouldhavebeen.

AtaGrouplevel,revenuedeclinedby9.8%

(constantcurrencybasis)to£877.1m.

Withintheseresultsthereisamixedpicture

regionally,withEMEAandAPACrevenues

broadlyflat,butAmericasseeinga

significantstepdown.EBITDAof£197.5m

comparedwith£245.0mlastyear.Profitwas

furtherimpactedbyincreaseddepreciation

andamortisationchargesasaresultofour

ongoinginvestmentprogrammes,together

withsignificantlyhighernetinterestcharges.

PAUL MASON, CHAIR

CHAIR’S STATEMENT

DOING

THE RIGHT

THING

6 DR. MARTENS PLC ANNUAL REPORT 2024

Asourguidanceindicates,wefaceatough

outlookforFY25,withourUSAwholesale

customersnotexpectedtofullyrestockthis

year,andinflationcomingthroughinour

operatingcostbase,withouttheusual

benefitofpriceincreasestooffsetatleast

someofthiscost.Thisbackdropalso

meansthatthereismoreuncertaintyaround

ourfullyearoutturnthanisusuallythecase.

Icanassureourinvestorsthatwewilllook

todelivercostsavingsandefficiencies

whereverpossible,whilstprotectingthe

brandandourfuturegrowthprospects.

Westillremainveryconfidentinthe

headroomforourbrandinthemediumto

longterm,andwewilltakeastepchangein

ourbrandcommunicationstoensureour

marketingisfocusedonourproductoffering,

whichwillbeanimportantpartofreigniting

bootsdemand,particularlyintheUSA.

This was another

disappointing year

for our business in a

challenging external

environment. Against

this backdrop, our brand

remains strong and I

remain exceptionally

proud of the passion and

dedication of our people.

PAUL MASON

Non-Executive Chair

Governance

Afewweeksagowewelcomedournew

CFO,GilesWilson,followingtheretirement

ofJonMortimoreinMarch.Gilesbringswith

himawealthofexperience,havingbeenboth

CFOandCEOatJohnMenziesplc,andhe

joinedusfromWilliamGrant&SonsLimited,

oneofthelargestglobalspiritscompanies.

HeisanoperationallyfocusedCFOandhis

timeinthebrandedspiritsindustryhasgiven

himgoodgroundinginglobalbrands.Iam

excitedabouttheexperienceandcapability

hewillbringtothetopteam.

Inlate2023wealsoannouncedthatIje

Nwokorie,aNon-Executiveforalmostthree

years,wouldbesteppingdownfromthe

BoardtojointhebusinessfulltimeasChief

BrandOfficer(CBO)inFebruary2024.This

newlycreatedroleencompassesProduct,

MarketingandStrategy,responsiblefor

settingtheoverallbrandstrategy,visionand

futuredirection.Ijeisabrandvisionaryand

experiencedbusinessleaderandjoined

usfromAppleInc.,wherehewasaSenior

DirectorinAppleRetailsince2018.Prior

tothisIjespent11yearsatglobalbrand

consultancyWolffOlins,latterlyasCEO.

Oxford Street store

STRATEGIC REPORT

7DR. MARTENS PLC ANNUAL REPORT 2024

GILES WILSON

CHIEF FINANCIAL OFFICER

FINANCE REVIEW P32

WELCOME

Can you tell us a little about

your background?

Havingqualifiedasachartered

accountantwithPwC,Ispentthe

earlypartofmycareerinfinance

rolesforGallaherGroupPlcand

CommercialEstatesGroup

Limited.IthenjoinedJohn

Menziesplcin2011,whereI

spentalmostadecade,including

asamainBoardDirectorinitially

asCFOforfouryearsandthen

subsequentlybecameCEO.

Duringmytimethere,wedealt

withavarietyofbusiness

challenges,includingthefull

Board-ledstrategicreviewofthe

Group,leadingtoraisingequity

viaarightsissuetofunda

transformationalacquisition

fortheAviationbusiness,to

becomeoneofthelargestglobal

aviationservicesbusinesses

intheworld;thedecisionand

executionofthedivestment

oftheNewspaperDistribution

businesstobecomeapureplay

aviationbusiness;andfinally

leadingthebusinessthrough

initialphasesofCovidlockdown

andsecuringthelong-term

fundingthroughthis

unprecedentedtime.Latterly,

beforejoiningDr.Martens,Iwas

theCFOofWilliamGrant&

SonsLimitedforfouryears,

oneoftheworld’slargestfamily

ownedbrandedspiritsbusiness,

ownersofgloballyrenowned

brandsGlenfiddich,The

BalvenieandHendricksGin.

What attracted you to the

role at Dr. Martens?

I’velearntthroughmycareer

thatworkingforgreatbrands

alwaysgivesyouanadvantage,

andtheopportunitythat

high-marginbrandedproducts

offer.LookingatDr.Martens,

Iseeanincrediblywell-loved,

durablebrand,withstronggross

marginsandcashgeneration.

Iwasalsoattractedbyhow

underpenetratedthebrandstill

isinmajormarketsglobally,

suchastheUSAandJapan.

Ihaveenjoyedmeetingpeople

fromthebusinessandthe

uniqueculture,wherepeople

canauthenticallybethemselves

andthrive,resonatedwithme.

Finally,Ifeltthatmyexperience,

particularlyasaPLCCFO,

wouldaddvaluetothebusiness.

What are your first priorities

as you settle into the role?

Weknowwehavedisappointed

investors,missingourguidance

severaltimesandimpactingthe

leveloftrustthemarkethasin

us.Whilstsomeofthereasons

forthisareexternalforces

outsideofourcontrol,weneed

todoabetterjobcommunicating

withourexternalstakeholders

andlayingoutthefinancial

metricswe’refocusedon

deliveringthisyear.Youcanread

moreaboutthisinmyFinance

Reviewonpage32.

I’llalsobespendingtime

understandingthecostbase

andinvestmentplansofthe

business,toensurewe’re

managingcoststightlywithout

impactingourfuturegrowth

potential.

Moregenerally,I’mlooking

forwardtogettingtoknowthe

business,includingmeetingour

peopleglobally,oursupplier

baseandourwholesalepartners.

We’re thrilled to welcome

Giles, whose extensive

experience across

sectors, most recently

in the branded spirits

industry, together with his

knowledge of the public

markets, will be a valuable

asset to the Board.

PAUL MASON

Non-Executive Chair

8 DR. MARTENS PLC ANNUAL REPORT 2024

CHAIR’S STATEMENT CONTINUED

Inmid-April2024weannouncedthatFY25

wouldbeKennyWilson’slastyearasCEO.

Aspartofanorderlysuccessionplan,and

followingathoroughsearchprocess,the

BoardwasdelightedtoannouncethatIje

willsucceedKennyasCEO.KennyandIje

willworktogethertoensureasmooth

handover,withIjebecomingCEObefore

theendofFY25.IjewillremainasCBOin

themeantime,withhisfocusbeingonthe

brandanddrivingdemandaheadofthe

importantAW24season.

KennywillhaveservedasCEOforalmost

sevenyears,throughwhichthebusinesshas

professionalisedanddeliveredsignificant

growth.Kenny’sfocusonproduct,brandand

custodianshiphasinstilledastrongculture

throughtheorganisation.Iamgratefulthat

Kennywillensureanorderlytransitionto

IjeoverthecomingyearandIwillalsobe

activelyinvolvedinhelpingtoensurethat

thehandoverisasseamlessaspossible.

Iamexcitedaboutthefuturecombination

ofIjeandGilesandbelievethattheir

complementaryskillsetsandexperiences

willbeapowerfulforceindrivingthe

businessforwardintheyearsahead.

Moreinformationcanbefoundinour

GovernanceReportfrompage85.

People

Iremainsoimpressedbytheresilienceand

hardworkofourpeople,throughanother

challengingyear.Withouttheirdetermination

anddedication,wewouldnotbeableto

serveourcustomerswithcareandpassion

dayin,dayout;workcloselywithour

partnersandsuppliersandcontinuetostep

forwardinsustainability.I’dliketoexpress

theBoard’sthankstoallofourpeoplefor

theireffortsthisyear.

Sustainability

Ourproductshaveembodiedtimeless

design,longevityanddurabilityforoversix

decades,andsustainabilityisembedded

acrossthebusiness.Thisyearwemade

furtherstrides,withthelaunchofan

authorisedrepairserviceintheUK,thelaunch

ofReWair,ourdedicatedresalesite,inthe

USAandthelaunchofourfirstproductsusing

reclaimedleather,GenixNappa.Youcan

readmoreaboutthesedevelopmentsand

thewiderprogressagainstoursustainability

commitmentsinourSustainabilityReport

onpage46onwards.

Dividend

TheBoardrecognisestheimportanceof

dividendstoourshareholders.Wehave

proposed,subjecttoshareholderapproval,

afinaldividendof0.99p,takingthetotal

dividendforFY24,includingtheinterim

dividendof1.56p,to2.55p.Whilstthisis

ayear-on-yearreductiongiventhelower

earningsachievedthisyear,the35%

payoutforFY24isatthetopofthepolicy

range.WearealsosharingthattheBoard’s

intentionistoholdtheFY25dividendflat

inabsoluteterms,beforereturningtoan

earningspayoutinlinewithourdividend

policy(of25%to35%payout)inFY26

onwards.Finally,we’remakingsome

changestoourapproachtosettingthe

interimdividendandpaymentdates,which

youcanreadaboutintheFinancereview

onpage32.

Paul Mason

Non-ExecutiveChair

29May2024

What will define success

in the role for you?

AsI’vejustdescribed,success

inthecomingyearwillbestarting

torebuildtrustandcredibilitywith

ourinvestorbase,throughclear

communicationanddisclosure,

layingoutthenear-termmetricsto

judgeusonanddeliveringagainst

these.Lookingfurtherout,Iam

excitedtoplaymyroleinthe

continuedprofessionalisationof

thebusiness,leveragingthecost

basewhichwillenableusto

unlockthegrowthpotentialahead.

How do you feel about

the growth potential of

the business?

I’dlongknownaboutthebrand

havinggrownupintheUK,

howeverasIgottoknowthe

business,evenaftersuch

strongtop-linegrowthoverthe

pasttenyearsIwassurprised

byjusthowmuchopportunity

thereisinmajorcountriessuch

astheUSA,Japan,Germany

andItaly–tonamejustafew.

It’simportantwegrowinthe

rightway–withaDTC-first

approach,supportedby

enhancingwholesale.Asthe

systemsinvestmentswe’re

currentlyundertakingfallaway,

thiswillfurtherdrivegrowth

inprofitability.

I am excited to be

joining the Company

at this time of

transition and I am

looking forward to

working with the

team to drive the

strategy forward.

GILES WILSON

Chief Financial Officer

STRATEGIC REPORT

9DR. MARTENS PLC ANNUAL REPORT 2024

asitshouldhavebeen.Inthenextsection

wedetailthechangeswe’remakinginour

marketingapproachandtheactionplan

we’reimplementingtoreignitedemandin

thismarket.

InFY24wetookthestrategicdecisionto

reducethebreadthanddepthofvolume

weselltoEMEAetailers,whichreduced

wholesalerevenuesinthisregion.The

11.8%EMEADTCgrowthisthereforemore

indicativeofourunderlyingperformance,

albeititwaspartiallyflatteredbytheearlier

timingofEaster.WithinEMEA,our

conversionmarketsofGermany,Italyand

Spainsawstrongdouble-digitDTCgrowth

andUKDTCgrowthwaspositive,although

atalowerlevel.Japanmakesupthemajority

ofourAPACregionandwesawcontinued

goodgrowthinthislargelyDTCmarket.

FY24wasachallengingyearforour

business,withadifficulttradingenvironment

andconsiderablemacroeconomic

uncertainty.Ourlargestmarket,theUSA,

continuestofacetwosignificantexternal

headwinds,namelyweakconsumer

confidenceimpactingspendinganda

particularlychallengingbootssegment,

whichwasdown17%fortheyearoverall

(source:Circanadata).Thisresultedin

widespreadcautionfromwholesale

customers,leadingtoweakerwholesale

orderbooks,aswellasimpactingourDTC

(‘Direct-to-consumer’)performance.The

USAhasthehighestwholesalepenetration

ofanymajormarket,andthereforetheweak

performanceherehadasignificantimpact

onourbusinessoverall.Wehaveanew

leadershipteamintheAmericaswhichisstill

embedding,andourmarketingandtrading

executionduringtheyearwasnotasstrong

KENNY WILSON

CHIEF EXECUTIVE OFFICER

Our FY24 results reflect

continued weak USA

demand. This particularly

impacted our USA

wholesale business

and offset our group

DTC performance,

where pairs grew by

7%. I am confident that

the actions we are

taking as we enter this

year of transition will

put us in good shape

for the years ahead.

DR. MARTENS PLC ANNUAL REPORT 2024

CEO’S STATEMENT

OUR CULTURE AND VALUES

At Dr. Martens, we value integrity, teamwork, professionalism

and passion, but Rebellious Self Expression is how we define

what’s unique about our culture and our brand. Our people have

the right to be themselves and express that self to the world.

But in everything they do, they also need to think about how it

impacts others and how they work together for the brand.

This is the Dr. Martens manifesto for how our people live and

lead through Rebellious Self Expression. This is our culture.

ACT COURAGEOUSLY:

Be bold, not reckless, and make mistakes

in the open. We want our people to try new

things and let others see our successes

and mistakes so we can all learn. We strive

together for progress, not perfection.

We want our people to have the courage

to challenge themselves and others.

This means being relentlessly curious to

understand others and challenging decisions

constructively to help make better ones.

Every voice matters but once a decision is

made, we all stand by it.

We can do anything, but we can’t do

everything. We want our people to take

responsibility for being both proactive

and efficient: to adopt, adapt and invent

in that order.

SHOW YOU CARE:

Success at DM’s impacts our consumers

and shareholders as well as our people.

They should think like an owner to advance

the brand first and collaborate across

functions and regions.

Our people should put the consumer at the

heart of their actions. DM’s are shaped by

the people who wear them and our actions

should always serve them first and foremost.

Be direct and be kind. Difficult conversations

are sometimes needed. We think about our

impact, we are open to other perspectives

while giving direct, factual feedback that aims

to build someone up, not tear them down.

We live and love the brand, including on our

feet. Everyone at DOCS has a DM’s story and

they tell it every day through showing up to

work in their Dr. Martens. We believe we stand

taller, prouder and together in DM’s.

BE YOURSELF:

We want our people to do what they

are brilliant at. Being themselves is their

superpower and it’s the value they bring

to work every day.

We value difference and diversity. While

everyone’s moment of Rebellious Self

Expression is different, all are equally

valid and should be respected.

SUSTAINABILITY P46

Weachievedsignificantsupplychainsavings

throughtheyear,whichbenefitedgross

margin.Thesesavingswereduetoour

supplychaintransformationstrategy

togetherwitharelativelybenignsourcing

backdrop.Theongoingsupplychain

transformationhassteadilyincreaseddirect

controloveroursupplychaininputs,from

around10%fiveyearsagotoaround70%

today.Thishasenabledimprovedqualityand

consistency,diversificationofriskfromsingle

pointdependencyanddirectnegotiationof

costs.ThesavingsdeliveredinFY24asa

resultofthisstrategyincludelowercosts

forkeycomponents,factorybenchmarking

toalignprofit,re-negotiationofourinbound

shippingcontractandoptimisationand

re-tenderofretailoutboundfreight.

Ourproductstrategyis‘iconsand

innovation’,meaningthatweaimtogrow

revenueofouriconiccontinuityproducts

throughconstantinnovationaroundthis

core,todrivebrandheatandnewness.

Weaimtogrowallthreecategoriesof

boots,shoesandsandalssimultaneously.

Pairssolddeclinedby17%year-on-year,

howeverthiswasentirelyduetoweakness

inwholesaleorders,withDTCpairsup7%.

Bycategory,DTCpairsforbothshoesand

sandalsgrewmorethan20%year-on-year,

whilstDTCbootspairssawasmalldecline.

Growingshoesandsandals,alongside

growingboots,isanimportantpartofour

strategytobroadenourproductportfolio

overthemedium-term,andwesaw

particularlygoodsuccessduringtheyear

withourmulesrangewithinsandalsand

loaferswithinshoes.Wearesteadfastly

focusedongrowingourbootscategory,with

thisaccountingfor66%ofGrouprevenues

inFY24.

DuringAW23welaunchedacapsule

collectionofournewAmpcategory:14XX.

Ampand14XXrepresentsthepinnacleof

ourcreativeexpression,withcutting-edge

innovationattheforefrontwhilestill

remainingtruetoourproducthandwriting

anddesignprinciplesofdurabilityand

versatility.Thecapsulecollection,built

aroundouroriginal1460boot,1461shoe

and2976Chelseaboot,sawencouraging

consumerfeedbackandinAW24wewill

launchalarger14XXrangetoconsumers.

Thepurposeofthesecollectionsistocreate

a‘trickledown’effect,creatingdemandfor

themainlineproductrange.

STRATEGIC REPORT

11DR. MARTENS PLC ANNUAL REPORT 2024

Collaborationshavealwaysbeenan

importantpartofourproductstrategy,being

anincubatorforfutureproductsuccessand

scale,whilstalsodrivingbrandheat.InFY24

ourcollaborationsincludedapartnership

withLagos-born,London-basedcollective

Motherlan,whichreinterpretedour1461

shoe.Wealsoworkedwithstreetwearbrand

GirlsDon’tCrywithourcreepershoe,which

wasreleasedthroughourecommerce

channelsgloballytogetherwithDoverStreet

Marketlocationsandsoldoutworldwide

within48hours.Aspartofourcelebrationof

10yearsoftheJadon,ourbiggestproduct

withinourFusioncategoryandoneofour

fouriconproducts,welauncheda

collaborationwithfashion-forwardbrand

Ganni,withahighimpactactivationeventin

NewYork.Wealsoreturnedtoourhighly

successfulpartnershipwithRickOwens,this

timecreatingtwoiterationsofour1460boot

togetherwithour18eyelet1918boot.These

bootsstoodonourinflatedDMXLsolewhich

originatedinour14XXrange.Exaggerating

ourclassicconstruction,thesolecombines

lightweightEVAwithdurablePVCpods.

Thebusinesscontinuesona

professionalisationjourney,ofwhichakey

elementisthenextphaseofourtechnology

investmentprogramme.Theprojects

currentlyunderwayaretheCustomerData

PlatformandtheSupplyandDemand

PlanningSystem.TheCustomerData

Platformwillgiveusasinglecustomerview

acrossbothDTCchannels(retailand

ecommerce),enablingmoretargeted

marketingandconsumerengagement.The

SupplyandDemandPlanningSystemisa

modernandagileplanningsystem,whichwill

improveavailabilityandaccuracyofproduct

forecasting.Thiswilldrivemeaningful

workingcapitalsavings,beginninginFY26.

Alongsidethesetwoprojectswehavea

numberofothertechnologyworkstreams

underwaytoimproveourdatacapabilities,

increaseourspeedofdecisionmakingand

driveefficiency.

Wecontinuetomakesignificantstridesin

sustainability.OurScienceBasedTargets

wereverifiedandapprovedbytheScience

BasedTargetInitiativeinOctober.Wehave

committedtoreducingourabsolute

greenhousegasemissionsalignedwiththe

ScienceBasedTargetsinitiativetoachieve

near-termreductiontargetsby2030and

NetZerobyFY40.

InOctoberwelaunchedourAuthorised

RepairservicetoconsumersintheUK.

Theserviceenablesconsumerstorepair

theirDr.Martensproducts,workingwith

athird-partyrepairpartnerandusingour

ownmachinesandmaterials.Consumer

reactionsofarhasbeenveryencouraging

andwewilllooktorollthisoutinourother

keymarketsinthefuture.

InMarchwelaunchedourownresale

offeringintheUSA,namedReWair.We

repairandrestoresecondhandDr.Martens

productsandsellthemthroughadirectly

rundedicatedresalesite.ReWairisan

importantpartofourNetZerobyFY40

targetasthecarbongeneratedfroma

resaleissubstantiallylowerthananew

product.Althoughrelativelyearlydays,

performancesincelaunchhasexceeded

expectations,forbothrevenueand

conversionrate,andwe’vehadhigh

positiveengagementonsocialmedia.

InlateMarchwealsolaunchedthree

productsinGenixNappa,anewupper

materialmadefromreclaimedleather.

Thisisanimportantstepinoureffortsto

achieveourtargetof100%ofproducts

madefromsustainablematerialsby2040.

Itisearlydays,howeverpressand

consumerengagementhasbeenpositive.

100%

Ourtargetistohave100%

ofproductsmadefrom

sustainablematerialsby2040

12 DR. MARTENS PLC ANNUAL REPORT 2024

CEO’S STATEMENT CONTINUED

LOOKING TO FY25 AND BEYOND

FY25willbeayearoftransitionforour

business.InEMEAandAPACregionswewill

continuetoexecuteoursuccessfulDOCS

strategy,totakeadvantageofthesignificant

whitespacegrowthopportunityinboth.

Wecontinuetoseegoodbrandmetrics

globally.Totalbrandawarenesshas

increasedby2%to74%.InEMEA,ourkey

conversionmarketsofGermany,Italyand

Spaineachsawbrandawarenessgrowth

of2-3%pts.OurhomemarketofUKsaw

amarginaldeclineinbrandawareness

althoughthisremainssignificantlyabove

theGroupat92%.InJapanourbrand

awarenessincreasedby1%ptsto53%,

withcontinuedopportunitytoclosethe

gaptotheGroupaverage.

IntheUSA,wherewehaveseena

disappointingtradingperformance,brand

awarenessisflatat73%,howeverwehave

seenameaningfuldeclineinconsideration

fromconsumerswhohavenotpurchased

Overrecentyearswehaveinvestedinthe

businessandbuiltanoperatingcostbase

inanticipationofalargerbusiness,andwith

revenuesweakerwearethereforeseeing

significantdeleverage.Alongsideouraction

plantoreigniteDTCbootsgrowth,wewillalso

beimplementingacostactionplanacross

theGroup,ledbynewCFOGilesWilsonand

theleadershipteam.Wewilltarget£20mto

£25mofcostreduction,withsavingsfrom

organisationalefficiencyanddesign,better

procurementandoperationalstreamlining.

WewillseethebenefitofthissavinginFY26,

TheUSAremainsournumberonepriorityacrossthebusinessandweareimplementingadetailedaction

plantoreturnthisbusinesstogrowth,targetingareturntopositiveDTCgrowthinH2FY25.Againstthis

actionplanweareincreasingmarketinginvestmentasapercentageofrevenueintheUSAintheyear

ahead,whilstensuringthatwemaximisethereturnandefficiencyofthisspend.

Thekeypillarsofthisactionplanare:

Marketing

Wewillhavean‘alwayson’product

marketingapproachtoicons,a

re-energisationofbootsinAW24

andfourkeyseasonalbootstories

toensurewedrivenewnessand

excitement.Marketingspendwill

beincreasedonmidtolowerfunnel

activity,todriveconsideration.

Digital

Wewillimprovethequalityofour

productdetailpagesandoptimise

ourcheckoutprocesstomaximise

ecommerceconversion.Wewillseek

todrivemorequalifiedtraffictooursite,

againtoimproveconversion.Finally,we

willimplementanorderinstoreoffering.

Wholesale

Giventhenatureofwholesaleorder

books,therewillbealagbetweenwhen

weseeourUSADTCperformance

improveandwhenourwholesale

businesswillreturntogrowth.Our

expectationisthatwewon’tseean

in-marketrestockdrivingarecoveryinour

USAwholesalerevenuesuntilAW25at

theearliest,whichequatestothesecond

halfofFY26.Wethereforeanticipate

ourUSAwholesalerevenuedeclining

double-digitpercentageinFY25.Through

FY25,however,wewillworkwithkeyUSA

wholesalecustomerstofocusactions

ondrivingbootssell-throughinstore.

USA ACTION PLAN

recentlyandthereforeoureffortswillbe

particularlyfocusedonbroadeningour

appealtoattractnewconsumers.

UnderthedirectionofIjeNwokorie,inhis

currentroleasChiefBrandOfficer(CBO),

weareshiftingourmarketingeffortsglobally

fromstorytellingfocusedonculturetoa

relentlessfocusonproductmarketing.Our

AW24marketingwillleadandbedominated

bybootsandthemarketingorganisation

hasbeenreorganisedtoproduct-led

marketing,centredaroundicons.

withtheFY25benefitlikelytobeimmaterial

duetothecostsofimplementation.Further

detailsandaprogressupdatewillbeprovided

atourfirsthalfresultsinNovember.

Kenny Wilson

ChiefExecutiveOfficer

29May2024

STRATEGIC REPORT

13DR. MARTENS PLC ANNUAL REPORT 2024

MACROECONOMIC TRENDS

SOCIETAL TRENDS

Market context

Expressions of identity

Expressionsofidentityoftoday’s

consumersaremorefluidthanever,andour

productsprovideablankcanvasthrough

whichconsumerscanexpressthemselves.

Weprideourselvesonbeingademocratic

brandwhichempowersconsumers.

Sustainability

Sustainabilityisanincreasinglyimportant

factorwhenconsumersmakepurchasing

decisions.Thisincludesproduct

considerations,end-of-lifeoptionsanda

brand’swiderimpactontheworldaroundit.

How we are responding

Ourproductsandbrandarewell-positioned

againstabackdropofsignificantsocietal

shiftsincludinggenderfluidityandthe

casualisationofdresscodes.Ourproducts

arepredominantlyunisexandtherefore

inclusivetoallgenderidentities.

Furthermore,ourtimelessproductsareworn

byallagegroupsandformultipleoccasions,

makingthemextremelyversatile.

Thisyearwelaunchedtwonewsustainability

initiatives,authorisedrepairintheUK,

whichallowsconsumerstorepairtheir

wornDr.Martensproducts,andReWairin

theUSAwhichallowsconsumerstobuy

second-handrestoredDr.Martensfootwear

andbags.Consumerreactiontobothhas

beenveryencouraging.

AttheendofFY24wealsolaunchedGenix

Nappa,ourlatestmaterialinnovation

madefromreclaimedleatheroffcuts,with

ourthreemosticonicproductsnowbeing

availabletobuyusingthismaterial.

Opportunities

• Rolloutofbothauthorisedrepairand

ReWairtoothermarketsinthefuture.

• Weareworkingtodevelop,testand

trialothersustainablematerials.

Readmoreonpages57,58and59.

MARKET REVIEW

Market context

Consumer confidence

Theglobalmacroeconomicenvironment

remainschallenging,withweakconsumer

confidenceandcontinuedhighinflation

impactingbothourcostsandconsumers’

discretionaryspending.Asaconsumerbrand,

thisrepresentsadifficulttradingbackdrop.

Inflation

Acrossthemediumtermwepriceto

broadlyoffsetinflation,withindividual

pricesbymarketsetutilisinganin-depth

pricingelasticitysurvey.Havingincreased

pricesinrecentseasonswearebroadly

holdingpricesflatforFY25,andthismeans

thatinflationarycostincreaseswillimpact

ourfinancialperformanceinamore

significantwaythanistypicallythecase.

How we are responding

Wecontinuetoexpecttheconsumer

backdroptoremainweak,particularlyinthe

USA.Weareimplementinganactionplan

toreigniteourperformanceinthismarket.

READ MORE P13

Withinflationimpactingourcostbasewe

willdoallwecantotightlymanagecosts

anddriveefficiencies.

Globallywecontinuetoviewthebrandas

underpenetrated,presentingasignificant

futuregrowthopportunity.Wewillcapture

thisopportunitythroughatargetedstore

rolloutprogramme,focusedmarketing

anddigitalinvestmentandworkingwith

wholesalepartnerstodrivebrand

awarenessanddeliverincrementalrevenue.

Opportunities

• Althoughstillelevated,theinflationary

backdropisimproving,whichshould

lessentheimpactonbothourcost

baseandconsumerspending.

• Inamorechallengedconsumer

backdropitistypicallyversatile,

long-lasting,high-qualitybrandsthat

outperform.Ourproductmarketing

aimstoreinforcethedurable,

high-qualitynatureofourproducts

toconsumers.

MARKET TRENDS

AND OPPORTUNITIES

14 DR. MARTENS PLC ANNUAL REPORT 2024

RE-ENGAGEMENT WITH

PHYSICAL SHOPPING

+6%

Retail revenue growth in FY24

Consumer confidence

Thewidermacroandconsumer

environmentintheUSAhasbeen

challengingthisyear.AccordingtoThe

ConferenceBoard,theconsumer

confidenceexpectationsindex

continued

tofallinMarch2024.Expectationsforthe

nextsixmonthsshowthatconsumers

remainconcernedovercostoflivingand

thepoliticalenvironmentintheUSA.

Lookingforward,ongoinggeopolitical

uncertaintytogetherwiththepresidential

electioninNovembermeanthatwe

expectthisbackdroptocontinue.

USA boots market

Inadditiontoaweakconsumer,theoverall

bootsmarketsegmentintheUSAhas

beenchallenging,withourperformance

broadlyinlinewiththissegment.Bootsare

ourbiggestandmostprofitablecategory,

andtherevenuedeclinehasthereforehad

asignificantimpactonourUSAbusiness.

Market context

Consumers returning to stores

Thetrendofconsumersreturning

tophysicalshoppinghascontinued

throughFY24,withourretailchannel

outperformingecommercedespitefootfall

stillbelowpre-Covidlevels.Ourstores

enableustoshowcasethedepthofour

brandandthebreadthofourproduct

range,withourexperiencedin-store

teamsactingasbrandambassadors.

The role of opinion-leading

wholesale stores

Wepartnerwithsomeoftheworld’smost

influentialmulti-brandwholesalepartners.

Ourproductsbeingshowcasedinthese

storeshelpstofurthergrowbrandequity

andelevateourpositioninginthemarket.

How we are responding

Havingbeguntheyearwith204stores,

wehaveopenedafurther46andclosed

11.Thistookourtotalretailstoresto239

Caution amongst wholesale customers

Theweakerconsumerbackdrop,combined

withaparticularlychallengingbootsmarket,

meansthatweareseeingwidespread

cautionfromwholesalecustomersleading

atyearend.Ourstorerolloutprogrammewill

continuethroughFY25withafocusonEMEA

conversionmarketsandJapan.

Wecontinuetoattractandpartnerwith

leadingwholesalepartnersglobally.

Wealsoaimtoworkcloserwiththem

incertainmarkets,forexamplewith

exclusivecollaborations,in-storeevents

andmarketingcontent.

toweakerorderbooks.Wearewell

positionedforwhenUSAsentiment

improves,drivingUSAwholesale

customerstorestock.Readmoreinthe

CEO’sStatementonpages10to13.

Opportunities

• Withtrafficstillbelowpre-Covidlevels

acrossmanystores,wearefocused

ondrivingin-storeconversion.

• Rolloutofomnichannelincontinental

Europeexpectedtodrivefurther

growthandengagement.

Market trends

in the USA

1. Theexpectationsindexisbasedonconsumers’short-termoutlookforincome,businessandlabourmarketconditions.

STRATEGIC REPORT

15DR. MARTENS PLC ANNUAL REPORT 2024

Doing the right thing for the long term is at the heart of our

custodian mindset at Dr. Martens. This means focusing on

creating long-term, sustainable value for our stakeholders.

CORE COMMERCIAL ACTIVITIES GLOBAL REVENUE CHANNELS

OUR BUSINESS MODEL

PEOPLE BRAND CONSUMERS

Our2,630passionateanddedicated

peoplearethecorebuildingblockofour

long-termsuccess

OUR FOUNDATIONS:

Ouriconic,globalbrandis

theequitythatdrivessustainable,

long-termgrowth

Weareproudtoplayarolein

ourconsumers’momentsof

RebelliousSelfExpression

61%

DIRECT-TO-

CONSUMER

ECOMMERCE

Our single most important store

is our own .com websites, which

cover the majority of our markets.

In FY24, ecommerce generated

32% of revenue.

RETAIL

We operate 239 own stores

globally and they provide the

opportunity to showcase our

brand and products in the best

possible physical environment.

39%

WHOLESALE

This encompasses wholesale

partner relationships, together

with country distributor models

and franchised stores, giving the

brand extra reach and awareness.

DESIGNING

Based on our deeply

entrenched and unique

Originals DNA, our product

designers operate at the

forefront of trends, designing

ranges for sale up to two years

into the future

PROTECTING

The intellectual

property (IP) of our

core DNA is protected

by our passionate and

highly talented IP team

SELLING

We segment our selling

by both channel –

Ecommerce, Retail

and Wholesale – and by

region – EMEA, Americas

and APAC

MANUFACTURING

During FY24, we manufactured our

products in nine countries with the

majority manufactured in Vietnam

and our Made In England range and

most collaborations made in our

Cobb’s Lane factory in

Wollaston, England

MARKETING

Our global, regional and

local marketing campaigns

aim to grow brand

awareness and drive

product demand and reach

across all channels

HOW WE

CREATE VALUE

16 DR. MARTENS PLC ANNUAL REPORT 2024

PARTNERS

Workingwithaniconic,globalbrandthat

resonatesstronglywiththeirconsumers

1.6K

wholesale customers in FY24

OUR PEOPLE

Ongoingtraininganddevelopment

withinasupportiveandinclusive

workingenvironment

92%

response rate to our Engagement

and Inclusion Survey

SUPPLIERS

Associationwithastrong,responsiblebrand

thatcangeneratelong-termdemandgrowth

OWNERS

Long-termbusinesssuccessdriving

sharepriceappreciation,aprogressive

dividendanda£50msharebuyback

programmeundertakeninFY24

£25M

total FY24 dividend payout

CONSUMERS

Beingabletobuyatimeless,durable

productforafairprice

Dr. Martens ranked number 1 for

unprompted brand awareness in our

Brand Survey in Boots

ENVIRONMENT & COMMUNITIES

Reducingourenvironmentalimpactand

leavingthingsbetterthanwefoundthem

What we do

Dr.Martensisaniconic,globalfootwearbrand.We

makeboots,shoesandsandalswhichwesellthrough

ourDTCchannelviaourecommerceplatformsandour

stores,andthroughourbusiness-to-businesschannel

viabothwholesalersanddistributors.

Weoperateinthreeregions–EMEA,Americasand

APAC–andhavesevenprioritymarkets–USA,UK,

Germany,Italy,France,JapanandChina.Ourbiggest

sellingproductsremainour‘Originals’includingthe

1460boot,the1461shoeandthe2976Chelseaboot.

READ MORE P4

WHO WE CREATE VALUE FOR

PARTNERS SUPPLIERS FINANCIAL

Ourlong-termsupplierrelationships

ensureconsistentlyhighproductquality

aroundtheglobe

Ourstrongwholesalepartner

relationshipsprovidesupporttoour

DTCexpansionplans

Strongmargins,highcash

conversionandarobustBalance

Sheetsupportcontinuedinvestment

inlong-termgrowth

HELD FACE-TO-FACE CONFERENCES

WITH OUR KEY TIER 1 SUPPLIERS

DURING THE YEAR

SUCCESSFUL LAUNCH OF

AUTHORISED REPAIR IN THE UK

STRATEGIC REPORT

17DR. MARTENS PLC ANNUAL REPORT 2024

In this section we identify our key

stakeholder groups, explain why

and how the Company actively

engages with them, set out a

number of the metrics used to

measure success and summarise

some of the outcomes of our

engagement.

In a change to the approach taken

in last year’s Annual Report, we

have included a separate section

dedicated to explaining how the

Board engages with each of these

groups and how their interests

influence its decision-making.

This can be found on pages 101 to

104 in the Governance Report and

should be read in conjunction with

the wider business context

provided on the following pages.

Further information regarding how

the principles underpinning Section

172 are reflected across the wider

business are incorporated by

cross-reference and in the table to

the right, while our formal ‘S.172

Statement’ is set out below.

S.172 PRINCIPLE LOCATION OF MORE INFORMATION

The likely consequences of any

decision in the long term

• Chair’sStatement(pages6to9)

• CEO’sStatement(pages10to13)

• Ourbusinessmodel(pages16and17)

• Ourstrategy(pages22and23)

• Keyperformanceindicators(pages30

and31)

• Effectiveriskmanagement(pages38

and39)

• Boardactivities(pages96and97)

• Viabilityassessmentandgoing

concern(pages44and45)

The interests of the Company’s

employees

• Stakeholderengagement:Ourpeople

(page19)

• SustainabilityReport:People(pages

63to72)

• NominationCommitteeReport(pages

108to115)

• Whistleblowing(page143)

• RemunerationCommitteeReport

(pages116to118)

• GovernanceReport:OurPeople

(page101)andKeyHires(page104)

The need to foster business

relationships with suppliers,

customers and others

• Ourbusinessmodel(pages16and17)

• Ourstrategy(pages22and23)

• Ourstrategyinaction(pages24to29)

• SustainabilityReport(pages46to74)

• Anti-briberyandcorruption(page143)

• GovernanceReport:OurSuppliers

(page103)

The impact of the Company’s

operations on the community

and the environment

• Stakeholderengagement:

Environment

andCommunities(page21)

• SustainabilityReport(pages46to74)

• TCFD(pages75to83)

• GovernanceReport:OurEnvironment

andCommunities(page103)

The desirability of the Company

maintaining a reputation for high

standards of business conduct

• Effectiveriskmanagement(pages38

and39)

• Divisionofresponsibilities(page98)

• AuditandRiskCommitteeReport

(pages134to143)

• Directors’Report(pages144to148)

The need to act fairly as between

members of the Company

• Stakeholderengagement:Owners

(page19)

• Relationshipwithlargestshareholder

(page147)

• AnnualGeneralMeeting(page147)

• GovernanceReport:Owners(page

101)andKeyBoardDecisionsin

FY24(page104)

A key responsibility of all Directors of UK

companies under the Companies Act 2006

(the Act) is their duty to promote the success

of the company. Specifically, the Act requires

that each of the Directors of Dr. Martens plc

must act in a way that they consider, in good

faith, is most likely to promote the success of

the Company for the benefit of its members as

a whole, and in doing so have regard (among

other matters) to:

MAINTAINING A LONG-TERM, CUSTODIAN

MINDSET (PAGES 101 TO 104)

‘the likely consequences of any decision in the

long term’ and ‘the desirability of the Company

maintaining a reputation for high standards of

business conduct’

OUR PEOPLE (PAGE 19)

‘the interests of the Company’s employees’

CONSUMERS, PARTNERS AND

SUPPLIERS (PAGES 20 AND 21)

‘the need to foster the Company’s business

relationships with suppliers, customers

and others’

ENVIRONMENT AND COMMUNITIES

(PAGE 21)

‘the impact of the Company’s operations

on the community and the environment’

OWNERS (PAGE 19)

‘the need to act fairly as between members

of the Company’

The Board recognises that maintaining strong

relationships and healthy dialogue with the

Groups’ stakeholders remains critical to our

objective of delivering sustainable growth over

the longer term. The needs of our stakeholders

are closely considered by the Board when

discussing matters of strategic significance.

The Board also pays due regard to the

potential impact of proposals tabled for its

approval on our stakeholders and has sought

to establish a wider business culture that

keeps stakeholder interests at the heart of

decision-making below Board level.

The Board therefore confirms that, throughout

the year under review, it acted, and continues

to act, to promote the long-term success of the

Company for the benefit of shareholders, while

having due regard to the matters set out in

Section 172(1)(a) to (f) of the Act.

While the Board will always favour outcomes

that benefit all stakeholder groups to the

greatest extent possible, it is mindful that

achieving this is not always possible.

Stakeholder priorities are wide-ranging and do,

at times, compete and conflict. The Board

therefore seeks to take decisions that it believes

are most likely to provide results that deliver

our strategy, thereby serving the interests of

all stakeholders over the longer term. How

stakeholders were considered in certain key

decisions taken by the Board during the year

can be found in the ‘Our stakeholders’ section

of the Governance Report on pages 101 to 104.

The general principles set out in Section 172

are also intrinsic to how the Company

operates below Board level and are firmly

embedded within our culture. The interests

of our stakeholders and the ways in which

the actions we take as a business impact their

interests are considered as part of decision-

making processes across the Company.

Some examples of these are provided below

and more information can be found in our

Strategic and Sustainability Reports, located

from pages 1 and 46 respectively.

SECTION 172 STATEMENT

MEETING THE NEEDS

OF OUR STAKEHOLDERS

18 DR. MARTENS PLC ANNUAL REPORT 2024

STAKEHOLDER ENGAGEMENT AND SECTION 172 STATEMENT

OWNERS

Shareholders of Dr. Martens

plc, be they large institutional

investors, employees, private

individuals or our largest single

investor, IngreLux S.àr.L.

All Dr. Martens employees

globally, whether based

in our own stores, offices,

distribution centres or

factories.

Why we engage

• Ourshareholdersarethe

ownersofourCompany.

Engagingwiththemisan

essentialandongoingprocess

fortheBoardandanimportant

meansthroughwhichit

dischargesitsdutyunder

Section172oftheCompanies

Act2006,conductedthrough

arangeofchannels.

• Understandingourinvestors’

prioritiesandensuringwe

maintainclearandopen

dialogueisanimportantpart

ofbeingalistedbusiness.

How the Company engages

• OurInvestorRelations

functionisfocusedonongoing,

openengagementwithour

shareholdersthroughregular

meetingsandinvestor

roadshows,includingone-to-

onemeetingswithourlargest

institutionalshareholders,

investorgroupmeetingsand

meetingswithprospective

investors.

• Managementand,where

appropriate,Non-Executive

Directorsregularlymeetwith

institutionalshareholders

followingresultsandatotherkey

juncturesduringtheyear.

• TheDirectorofInvestor

Relationsisresponsiblefor

investorengagementand

ensuringthattheBoardiskept

apprisedofinvestors’views.

• Regularin-depthfeedbackon

investorviewsprovideddirectly

andbyourcorporatebrokers,

followingresults,meetings,

conferencesandteach-inevents.

• Tradingupdatesannounced

viatheLondonStockExchange

RegulatoryNewsServicein

additiontoourhalfandfull

yearresults.

Metrics

• Atotalof141investormeetings

covering111separatefirmsin

FY24,77ofwhichwere

attendedbyatleastoneofthe

ChiefExecutiveOfficer,Chief

FinancialOfficerorChairman.

• Regularqualitativefeedback

receivedfrominvestors

followingresultsandotherkey

announcements.

• Movementsinourshareregister

andsharepriceanalysis

reportedtotheBoard.

• Majorinstitutionalinvestorsand

proxyadvisoryfirmsconsulted

inrespectoftheCompany’s

draftnewRemunerationPolicy.

Outcomes

• Regulardialoguewithinvestors

throughouttheyearenabled

investorstodiscussquestions

andconcernsdirectly.

• Allresolutionspassedatthe

2023AGMwithatleast91.84%

ofvotesinfavourandover78%

oftotalvotingcapitalinstructed.

• A‘ProductTeach-in’eventheld

toprovideinvestorswiththe

chancetoengagewithour

product,sustainabilityand

marketingteams,givinga

deep-diveinsightintothe

strategyineachareaandlatest

productinnovations.

OUR PEOPLE

Why we engage

• Regular,high-qualityengagement

withourpeopledriveshigh

performanceandawillingnessto

goaboveandbeyondatalllevels

oftheorganisation,startingfrom

theverytop.

• Engagingwithourpeopleallows

thebusiness’sleadershipteamsto

measurethe‘moodmusic’ofthe

organisationthroughconstructive,

two-waydialoguetounderstand

whatisworkingwellandtoidentify

areasforimprovement.

• Touniteourpeople,creatinga

senseofbelongingwhichinturn

promotescollaborationacross

thebusinessandourunique

cultureandvalues.

• Toattractandretainthekey

talentrequiredtohelpusdeliver

ourDOCSstrategy.

How the Company engages

• OurglobalEngagementand

InclusionSurveyisdistributed

toallemployeesannuallyand

providesvaluableinsightinto

theirexperienceofworkingat

Dr. Martens.

• ‘OnBrand’,themonthlyblog

sharedwiththeglobalbusiness

byourCBO,IjeNwokorie,

providesemployeeswithregular

insightsintohisprioritiesand

theactivitiesofourBrand

functions,includinghighlights

fromkeyprojects,inan

engaging,digestibleformat.

• Ourquarterlyemployee

magazine,‘OnAir’,provides

newsfromacrossthebusiness

andisdeliveredbyemailand

inofficetoouremployees.

• GlobalandregionalTownHalls

keepemployeesupdatedon

businessdevelopments,share

insightintokeyinitiativesand

provideopportunitiestoask

questionsoftheGlobal

LeadershipTeam(GLT).

• Teameventsareencouraged

tocreateopportunitiesfor

peopletoconnectandtoshape

individualteamprioritiesand

alignourpeoplebehindthe

widerstrategy.

Metrics

• 92%responseratetothe

FY24Engagementand

InclusionSurvey.

• Atargetscoreforour

EngagementandInclusion

Surveyisastrategicbonus

targetfortheGlobal

ManagementTeamandSenior

ManagementTeam,linking

effectiveengagementwiththe

potentialremunerationofthe

Company’smostseniorleaders.

• 1,584ofourpeople

communicatedwiththe

business’sHRfunctionsusing

Menti,adigitalfeedbacktool.

Outcomes

• RegularGroupTownHalls

establishedinFY24tobring

supportinggroupfunctions

together,mirroringthesetup

ofourregions.

• ‘SpeakUp’policygoverning

internalwhistleblowing

proceduresrefreshedandrolled

outglobally.

• ‘WebinarWednesdays’offer

onlinesessionsonarange

oftopicstoassistourpeople

indevelopingtheirskillsand

knowledge.

• AGroupsocialcommitteewas

established,servingtheLondon

andCobbsLaneofficesinthe

UK.

• Amonthly‘InsideTracks’

newsletterwaslaunchedin

theUSA.

• InAPACleadersconducteda

holisticorganisationassessment

fromwhichseveralhighimpact

actionsweretakentoenhance

people’sengagementincluding

connectionforumsandrobust

communicationcadence.

STRATEGIC REPORT

19DR. MARTENS PLC ANNUAL REPORT 2024

STAKEHOLDER ENGAGEMENT AND SECTION 172 STATEMENT CONTINUED

PARTNERS

CONSUMERS

The key B2B partners

supporting the expansion

of our brand across new

and existing markets.

The patchwork of groups and

individuals who support our

brand and buy our products,

through any channel.

Why we engage

• Engagingwith,andactingin

theinterestsof,ourconsumers

iscriticaltothehealthofthe

Dr.Martensbrandandthe

long-termsuccessofthe

Company.Withoutthem,our

Companywouldnotexist.

Assuch,itisessentialthatthe

business,ledbytheBoard,

understandswhatmattersto

themsothatwecancontinue

toprovideaproductofferthatis

relevantandappealingwhile

remainingtruetoourbrandDNA.

How the Company engages

• Dedicatedsocialmedia

maintainongoingdialogue

andengagementwithour

onlineconsumercommunity,

establishingacontinuous

connectionbetweenthe

businessandconsumersand

providinganessentialsource

ofactionableinsight.

• Harnessingtheexpertiseof

ourretailcolleaguenetworkto

engagedirectlywithconsumers

instoresandthroughdigital

platforms,feedingkeythemes

backtomanagement.

• Developingunderstandingof

ourglobalconsumersegments

throughspecificandqualitative

research,helpingtodrivemore

localisedandtargetedbrand

initiatives.

• Anongoingcommitmentto

provideproductswhichmeet

ourconsumers’ethicaland

environmentalexpectations.

• Providingopportunitiesfor

consumerstofamiliarise

themselveswithnewsustainable

materialsandlearnmoreabout

themfromourknowledgeable

retailcolleaguesinaselection

ofkeystoresglobally.

Metrics

• Insightsfromtheannualand

quarterlyconsumersurveysinto

therelativeperformanceofour

brandandproducts,including

brandawareness,familiarity,

NetPromoterScoreandvalue

formoneyperception.

• Extensivequalitativeresearch

intoourconsumersegments,

includingdemographics,

purchasebehaviour,interests,

attitudesandvalues.

• Monitoringconsumersentiment

inrelationtosustainabilityvia

metricstrackingthesuccess

ofspecificproductlaunches,

recommerceinitiativesand

generalconsumerperceptions

ofoursustainabilitycredentials.

Outcomes

• Continuedgrowthandhigh

levelsofengagementand

brandresonanceamongour

onlineconsumercommunity,

• Successfullylaunchedournew

‘MadeStrong’brandplatform

duringtheyear.

• Investmentinconsumerinsights

todevelopourunderstanding

ofconsumersegments.

• Consumerfeedbackonthe

importanceofsustainable

productsandsaleplatforms,

resultinginnewrecycledleather

materialtrialandthelaunch

ofReWairintheUSA.

Why we engage

• Asthesourceofasignificant

proportionofGrouprevenue,it

isimperativethatwecontinue

tofosterclose,strongworking

relationshipswithourkeyB2B

partnersandensureourbrandis

showingupinanauthenticway,

withthequalityexperienceand

productassortmentsour

consumersexpect.

• Inlargegeographically

dispersedmarketssuchasthe

USA,thewholesalechannel

allowsustoreachmore

consumerstointroducethem

toourDr.Martensbrand.

• Toensurethatappropriate

inventoryandproductmixare

plannedfortherighttimesof

year,withanassortmentthat

supportstheconsumerwho

shopsinthosestores.

• ClosemanagementofourB2B

orderbookensureswedeliver

goodsontimeandenablesusto

reviewopportunitiestoupsellto

partnersbasedonourinventory.

How the Company engages

• Weworkcloselywithourpartners

ontheiroperationalstrategies,

ensuringthatourbrandisalways

wellrepresented.Wecontroland

approvestorenetworkexpansion

plansandhaveestablished

minimumsthateachpartner

mustpurchaseinordertoensure

thecontinuedgrowthofeach

respectivebusiness.

• RegionalB2Bfunctionsmanage

andmaintainrelationshipswith

ourwholesalepartners,including

regularcommunicationand

engagement.

• Reviewing,evaluatingand

implementingtheproduct

segmentationstrategywithinthe

B2Bmarketplace,ensuringwe

gettherightproductintotheright

locationstoservetheneeds

ofourpartnersandconsumers.

• EngagingwithourkeyB2B

partnersontheend-to-end

go-to-marketprocessensures

thatourbrandandproductsare

presentedinlinewithourseasonal

strategiesandbrandstories.

Metrics

• Continuousandconsistent

analysisofstocktosales

metricsandsell-throughdata

tomitigateriskandmaximise

in-seasonopportunities.

• OurB2Bpartnersaretieredinto

asegmentationprogramme,

whichisconstantlyre-evaluated

withaconsumerfirstmindset,

toensureourproductrange

landswithdifferentiationacross

themarketplace.

Outcomes

• Stepstakenduringtheyear

toelevateandexpandthe

penetrationofouraccountbase,

keepingtofewerbuthigher-

qualitypartnerstoexpandthe

reachofthebrandandincrease

awareness,managebrand

presentationandimprovethe

overallcustomerexperience.

• Continuedinvestmentinthe

refurbishmentofdistributorand

franchisestorestoenhance

theconsumerexperienceand

ensurebrandpresentationis

inlinewithourstandards.

• Leveraginglocaldistributor

expertiseallowsustotake

advantageofshort-term

opportunitiestoincreasebrand

awarenessandtestDTCviability.

20 DR. MARTENS PLC ANNUAL REPORT 2024

SUPPLIERS

ENVIRONMENT

& COMMUNITIES

Product manufacturers,

tanneries and other

producers of the materials

used in Dr. Martens products,

logistics carriers and

distribution centre partners.

The environment on

which our activities

have an impact and

the communities in

which the business

operates globally.

Why we engage

• Oursupplychainisfundamental

totheabilityofthebusinessto

operateeffectivelyanddeliver

ourDTCfirststrategy,enabling

thesourcing,manufacture,

storageanddistributionofour

productstoconsumersglobally

andatthescaleneededto

supportourgrowthambitions.

• TheSupplyChainfunctionis

responsiblefordeliveringmany

aspectsofthesustainability

strategyandworkswithsuppliers

todriveasustainable,responsible

supplychain.

• Oursuppliersarecritical

partnersinrealisingthe

objectivesofoursustainability

strategyandachievingour

science-basedtargets.

Embeddingourenvironmental

principlesandexpectationsin

termsofworkplacestandards

acrossthesupplychainisonly

possiblethroughconstructive

engagementwiththem.

How the Company engages

• Regularsupplierconferences

hostedbyourChiefOperating

Officer,GeertPeeters,wholeads

theGlobalSupplyChainfunction.

• MonthlyTier1operationalcalls

facilitatedbytheGlobalSupply

Chainleadershipteam.

• Seasonalcostingreviewsand

updatemeetingsheldwithall

Tier1suppliers.

• Anongoingprocessofregular

assessmentofmanufacturing

facilities,includingperiodic

inspections,improvement

activitiesandCSRaudits

conductedthroughtheCSR

monitoringprogramme,which

focusesonmanaginghuman

rightsrisksinthesupplychain.

• TheDr.MartensMasterSupplier

AgreementandSupplierCodeof

Conductiscommunicatedtoall

suppliers,whoarerequiredto

complywithitatalltimes.

• TheChiefOperatingOfficerisa

memberoftheSustainability

Committeeandplaysacriticalrole

inensuringoursupplychainand

sustainabilitystrategiesarealigned.

Metrics

• DataacquiredthroughtheCSR

monitoringprogrammeprovides

insightintolevelsofcompliance

withrelevantlabourlaws,

regulations,industrystandards

andourownSupplierCode

ofConduct.

• Environmentaldatarequested

fromTier1supplierstoenable

ustounderstandourScope3

emissions.

• Closemonitoringofour

paymentperformanceensures

oursuppliersarepaidinfulland

inatimelyfashion,providing

assuranceinachallenging

economicenvironment.

Outcomes

• Long-lasting,strong

relationshipsestablishedwith

keysupplierswhichencourage

highstandardsofdeliveryand

constructivewaysofworking.

• Agoodlevelofsupplier

alignmentwithoursustainability

prioritiesthroughtheadoptionof

arangeofrelevantpoliciesand

standards,includingtheSupplier

EnvironmentalStandardand

GeneralMaterialRequirement

Policyandsustainableleather

commitments.

Why we engage

• Asafootwearretailerwehaveto

bemindfuloftheimpactour

operationshaveonthe

environment.Wehave

developedaclearstrategythat

managesourprioritisedimpacts

ontheenvironmentandthe

communitieswereach,while

embeddingsustainabilityacross

thebusinessandsupplychain.

Thisincludesourscience-based

targettobeNet-Zeroacrossthe

valuechainbyFY40.

• Acommitmenttosupporting

causesthatmattertoourpeople,

includingthroughtheworkofthe

Dr.MartensFoundation.

• Corporatesocialresponsibilityis

asimportanttoourstakeholders

asitistothebusinessitself.As

such,theCompanyiscommitted

totransparencyinrespectofCSR

mattersandrecognisesthe

importanceofthisinmaintaining

trustingrelationshipswithour

keystakeholders.

How the Company engages

• Our‘Planet,Product,People’

sustainabilitystrategycaptures

theCompany’senvironmental

andsocialimpactcommitments;

theSustainabilityCommittee

overseesthestrategyand

monitorssustainabilityinitiatives

acrossthebusiness.

• Twopaidvolunteeringdays

providedtoemployeesperyear

toenablethemtosupportlocal

communityinitiatives.

• Updatesontheactivitiesofthe

Dr.MartensFoundationare

regularlysharedviainternal

communicationchannels.

• Employeeparticipationinthe

Dr.MartensFoundationis

encouraged,fromnominating

charitiestoreceivegrantsto

volunteeringatcharityevents.

Metrics

• 100%oftheleathersourcedfor

theAW24seasonwasfrom

LeatherWorkingGroup(LWG)

certifiedtanneries.

• 93.5%oftheelectricityusedby

DTCoperationsintheUKand

EMEAwasfromrenewable

sourcesinFY24.

• £1.9minfundingawardedto65

organisationsbytheDr.Martens

FoundationinFY24.

• Aninternalclimate-related

engagementandeducational

eventduringFY24reached

nearly700ofouremployees.

• Monitoringtheperformanceof

ourrepairandresaleinitiativesto

informfutureplansandgauge

consumersentiment.

• EnvironmentaldatafromTier1

suppliersenablesusto

understandoursuppliers’

environmentalimpacts.

Outcomes

• Continuedprogressineachofthe

sustainabilitystrategicpillarsof

‘Planet,Product,People’,detailed

intheSustainabilityReportfrom

page46.

• Approvalofourscience-based

targetsreceivedfromthe

ScienceBasedTargetsinitiative.

• Thelaunchofreclaimedleather

material,‘GenixNappa’,in

partnershipwithGeneration

PhoenixLimited.

• Severalglobalinternal

engagementandeducational

eventsprovidedopportunitiesfor

ourpeopletolearnmoreabout

oursustainabilitystrategyand

progressmadeinrecommerce

andsustainablematerials.

STRATEGIC REPORT

21DR. MARTENS PLC ANNUAL REPORT 2024

Planet

DTC FIRST

Buildbrandequityanddrive

marginexpansion

WHAT IT MEANS

Driverevenuegrowthandmarginexpansionviadirect-to-

consumerchannelswhichmeansexpandingandimproving

ourownedretailstoresandecommerceplatforms.Wewant

todevelopfrictionlessandbrand-enhancingomnichannel

consumerjourneys.Wealsowanttobuildaprofitableresale,

repairandend-of-lifebusinessmodel.

HOW WE PERFORMED IN FY24

• GrewourDTCrevenuewithmixincreasingby9%ptsto61%

• Opened46newstoresglobally

• SuccessfulrolloutofomnichannelintheUK

• SuccessfullaunchofauthorisedrepairintheUK,

maximisingtheuseablelifeofourproducts

• LaunchedReWairintheUSA,whichallowsconsumersto

buysecond-hand,restoredDr.Martensfootwearandbags,

withencouragingearlyresults

NEXT STEPS FOR FY25

• ContinuetorolloutomnichannelinEMEAstarting

withGermany

• Open25-30storesglobally,withafocusoncontinental

EuropeandJapan

• Continuetooptimisetheomnichannelconsumerjourney

WHAT IT MEANS

DriveDM’sculturewithafocusonorganisational

engagementanddevelopingourpeopleforgrowth.Wewant

tobuildabest-in-class,resilient,sustainableandscalable

supplychainandcontinuetotransformdataandtechnology

intoakeybusinessenabler,strengtheningorganisational

resilienceandinformationsecurity.

HOW WE PERFORMED IN FY24

• TransformationofourNorthAmericadistributioncentre

(DC)network,withtheexpansionofourNewJerseyDC,

theintroductionofautomationinourLADCandthe

openingofanewDCinCanada.Youcanreadmoreabout

ourNorthAmericaDCnetworkonpage24

• Madesomesignificantinvestmentsintalent,includingthe

creationofaChiefBrandOfficerroletooverseeallaspects

ofbrand

• Continuedtoimplementoursupplychainstrategy,

unlockingvaluethroughcostsavings

NEXT STEPS FOR FY25

• Furtherembeddinguseofourproductlifecycle

managementsystemintothebusiness,whichwillgiveus

detailedvisibilitytodriveefficiencyandspeedtomarket

• ImplementournewSupplyandDemandPlanningsystem

intothebusinesswhichwillimproveplanningcapabilityat

amoregranularlevel

ORGANISATIONAL AND

OPERATIONAL EXCELLENCE

Enablegrowthandunlockvalue

• Climate

• Operations

Our DOCS strategy is underpinned

by our Planet, Product, People

sustainability strategy

OUR STRATEGY

DELIVERING

AGAINST

OUR STRATEGY

22 DR. MARTENS PLC ANNUAL REPORT 2024

Product People

WHAT IT MEANS

IgnitethebrandenginetoinspireRebelliousSelfExpression.

Ourproductinnovationisgroundediniconsandyear-round

relevance.Weaimtoleadinsustainabilitythroughdurability

andinnovation.Finally,wewillharnessinsightsanda

digital-firstmindsettodrivecut-throughmarketinginitiatives.

HOW WE PERFORMED IN FY24

• Launchedanewbrandplatform,MadeStrong,tobuild

brandawarenessandbringnewconsumersintothebrand.

YoucanreadmoreaboutMadeStrongonpage27

• LaunchedanewcategorywithinourAMPcollection,14XX,

whichisfocusedoninnovatingaroundourcoreproducts,

the1460boot,1461shoeand2976Chelseaboot

• Launchofnewproductrangemadefromreclaimedleather,

followingourpartnershipwithGenPhoenix

NEXT STEPS FOR FY25

• Reorganisethebrandorganisationunderthenew

ChiefBrandOfficer

• Pivotourmarketingtofocusonouriconicproducts,

particularlyboots

• ContinuetodevelopourCustomerDataPlatform,

allowingustobetterunderstandourconsumersand

usemoretargetedmarketing

• Continuetofocusontesting,developingandincluding

moresustainablematerialsacrossourproductrange

WHAT IT MEANS

WeaimtopartnerwithfewerandbetterB2Bpartnerstoreach

moreconsumerswithgreaterbrandpresence.Wewillcontinue

toimproveourbrandpresentationandincreasecontrolled

spacestoenhancetheconsumerexperience.Finally,thispillar

includesourconversionmarketstrategy,whichenablesusto

implementourDOCSstrategyinmoregeographies.

HOW WE PERFORMED IN FY24

• Wholesalerevenuesdown28%drivenbywidespread

customercaution,particularlyintheUSA

• Tookthestrategicdecisiontoreduceboththebreadth

ofproductandthetotalvolumessoldtoEMEAe-tailers

toacceleratemigrationofdemandtoourownchannels

• ContinuedsuccessinourcontinentalEuropean

conversionmarkets.Readmoreonpage28

NEXT STEPS FOR FY25

• Worktoformstrongeranddeeperpartnershipswithkey

USAwholesaleaccounts

• ContinuetodrivegrowthinEMEAconversionmarkets;

theserepresentamulti-yeargrowthopportunity

CONSUMER CONNECTION

Acquirenewconsumers

anddriveloyalty

SUPPORT BRAND

EXPANSION WITH B2B

ManageB2Bholisticallyandpurposefully

• Materials

• Packaging

• Lifecycle

• DE&I

• Humanrights

• Community

We want the world to wear DM’s footwear

when they have their moments of Rebellious

Self Expression.

Our DOCS strategy is about selling more

pairs of boots, shoes and sandals, to more

people, through our own DTC channel,

in our seven priority markets.

UK / USA / FRANCE / GERMANY /

ITALY / JAPAN / CHINA

STRATEGIC REPORT

23DR. MARTENS PLC ANNUAL REPORT 2024

BOOSTING

MAKING AND SOURCING DISTRIBUTIONRAW MATERIAL

EXTENDING LASTING RELATIONSHIPS WITH OUR SUPPLIERS

Strengtheningourstrategicpartnershipwithkeysupplierstodeliver

continuedhighstandards,constructivewaysofworkingandprofitable

businessforthelongterm.

NORTH AMERICA DISTRIBUTION NETWORK

Duringtheyear,wehavetransformedourNorthAmericandistribution

centre(DC)networkforfuturegrowth.Firstly,wecompleted

automationinourLosAngelesDC,configuringittodeliverspeed

andcostefficiencies.Secondly,weexpandedourprimarilydirect-to-

consumerNewJerseyDC,enablingustopick,packandship

wholesaleordersfromtheEastCoastofthecountry.Finally,in

Canada,wehavemovedtoalargerDCinToronto,whichisbetter

placedtoserveourbusinessinthismarketasitgrows.

Wearecurrentlyusingtemporarystoragefacilitiesaroundour

LosAngelesDCduetoourelevatedlevelsofinventory;weexpect

toexittheseinFY26.

OUR STRATEGY IN ACTION

24 DR. MARTENS PLC ANNUAL REPORT 2024

RETAILING, ECOMMERCE, WHOLESALE

C.70%

direct control over our supply chain

inputs today – increased from c.10%

five years ago

LINKS TO STRATEGY

Fastforwardtotoday,wenowsourceallofthekey

componentsofourproductsandworkwithour

suppliersondetailedcostingtoensuretheymake

afairprofit,butalsogivingusgreatercontrolover

productqualityandconsistency.

Duringthisfinancialyear,wehaveseenmaterial

savingsinsupplychaincosts,benefittingourgross

margin,andaswemoveforward,webelievethere

arefurtheropportunitiestooptimisecost,whilst

guaranteeingqualityandthereforefurthergross

marginimprovement.

SUPPLY CHAIN STRATEGY

Overthelastfiveyears,wehavebeenexecuting

oursupplychainstrategyandincreasingthe

controlwehaveoverourend-to-endsupplychain

inputs.Backin2018,Dr.Martensusedtobuya

finishedproductfromasupplierandhadlimited

visibilityoftheproductionprocessandcost

componentsofthatproduct.

FINANCE REVIEW P32

SUSTAINABLE INITIATIVES

DuringFY24,welaunchedtworepairandresale

initiativestohelpourconsumersextendtheuseablelife

oftheirDr.Martensproducts.IntheUKwelaunchedan

authorisedrepairserviceinpartnershipwithTheBoot

RepairCompany,whohaveover120years’experience

ofexpertlyrepairingandrestoringboots,shoesand

leathergoods.RepairsarecarriedoutbyTheBoot

RepairCompanyusingthesamemachineryand

componentsthatmakeourbootsandshoes.

IntheUSA,welaunchedourresaleplatform,ReWair,

followingthesuccessofourUKresaletrial.Consumers

canpurchasepre-lovedDr.Martensfootwearandbags

fromourdedicatedReWairwebsite.Forthefirsttime,

wealsolaunchedproductsmadefromreclaimedleather,

whichhelpstackleleatherwasteinthesupplychain.

Theseinitiativescomeunderthe‘DTCfirst’and

SUSTAINABILITY P46

DRMARTENSREPAIRS.COM

US.REWAIR.DRMARTENS.COM

EFFICIENCY

ENHANCING OUR

SUPPLY CHAIN

CONSUMER

PRODUCT END OF USEABLE LIFE

EXTENDING LIFESPAN

CARE

REPAIR

RESALE

RECYCLING

PARTNERSHIPS

‘Consumerconnection’pillarsofourDOCSstrategyand

supportprogresstowardsoursustainabilitycommitments.

YoucanreadmoreinourSustainabilityReportfrompage46.

MOVING TOWARDS CIRCULARITY

Byofferingcare,repairandresale,andbuildingglobal

recyclingpartnerships,wearesupportingthedevelopment

ofthecirculareconomy.

STRATEGIC REPORT

25DR. MARTENS PLC ANNUAL REPORT 2024

STRATEGIC REPORT

DRIVING

14XX will be the home for cutting-

edge innovation, where we push

the boundaries of our DNA to excite

and disrupt both the marketplace

and consumers. The launch of

14XX shows how we implement

our product strategy, which we

refer to as ‘icons and innovation’.

ADAM MEEK

Chief Product Officer

OUR STRATEGY IN ACTION CONTINUED

26 DR. MARTENS PLC ANNUAL REPORT 2024

STRENGTHENING OUR

GLOBAL BRAND

A new Made Strong brand platform

DuringFY24,welaunchedournewbrand

platform,MadeStrong.Thiswasaglobal

campaignwherewebroughttogether

productandbrandstorytellingunderthe

ideaof‘MadeStrong’.MadeStrongbrings

ourbrandpurposetolifeforourconsumers.

Thecampaigntalkedtotherationaland

emotionaltruthsabouttheDr.Martens

brandandourwearers.Fromaproduct

lens,wetalkedtotheattributesofquality

anddurabilityofourproductsand

highlightedupcomingnewnessaswell

asourcoreiconicproducts.

Inexecutingthecampaign,weadopteda

keycityapproachwithhighenergyevents

inNewYork,TokyoandLondonwhich

sawsignificantpresscoverage.Thiswas

coupledwithoutofhomemarketingand

socialmediacontent.

INNOVATION

SEED

LAUNCH

STYLE

SUBVERT

AW23 SS24 AW24

• Global 14XX launch with

strategic seeding

• Beta pack

• Global launch of DMXL 14XX

collab with Rick Owens

• Paris Fashion Week 14XX Styling

• Main range introduction of 2976

DMXL

• 14XX sub boot launch

Launching our 14XX collection

AlongsideMadeStrong,wealsolaunched

thecapsulecollectionofabrandnew

categorywithinAMP–14XX–whichwill

bethehomeforcutting-edgeinnovation,

wherewepushtheboundariesofourDNA

toexciteanddisruptboththemarketplace

andconsumers.Thefulllaunchof14XXwill

becominginAutumnWinter24.Thelaunch

of14XXshowshowweimplementour

productstrategy,whichwerefertoas‘icons

andinnovation’.Inpractice,thismeanswe

innovatearoundthecoreproductstobring

newnessandexcitement.

SCAN TO VIEW THE

14XX PRODUCT

LAUNCH VIDEO

PUSHING THE

BOUNDARIES

OF OUR DNA

LINKS TO STRATEGY

Tokyo Made Strong event

STRATEGIC REPORT

27DR. MARTENS PLC ANNUAL REPORT 2024

Spain

(Converted FY22)

Italy

(Converted FY22)

Germany

(Converted FY19)

FY20

FY22

FY23

FY24

OUR STRATEGY IN ACTION CONTINUED

GROWING

BUILDING BRAND

AWARENESS

CONVERSION MARKET

STRATEGY

Theconversionmarketstrategyisa

multi-yeargrowthopportunityforourEMEA

region.Attheendofadistributorcontract,

we‘takeback’themarket,allowingusto

implementthefullDOCSstrategy–opening

ourownstores,runningecommerceand

workingwiththerightwholesalepartners.

Thisgivesusgreatercontrolofourbrand,

allowingustoinvestinamarket,engage

withourconsumersandshowcaseourfull

productrange.

Overthepastfiveyears,wehaveconverted

anumberofmarkets,startingwithGermany

backinFY19,toItalyandSpainmost

recentlyinFY22.Sinceconversion,these

marketshavesignificantlygrownbrand

awareness,DTCmixandpairspercapita

withfurthergrowthopportunityahead.

+3%

YoY increase in Italy brand awareness

42%

Italy FY24 DTC mix

CAPTURING THE GROWTH

OPPORTUNITY IN ITALY

TakingItalyasanexample,wenowhave

12storesandhavebeentakingatwostore

cityapproach,openingtwostoresinkey

citiessuchasRome,MilanandTurin.Since

conversioninFY22,DTCmixhasincreased

to42%andbrandawarenesshasincreased

by3%.

Our Turin store

PAIRS PER CAPITA

Pairs/Capita (000s)Pairspercapitainourmostmaturemarket,

theUK,was30inFY24.Althoughnotall

prioritymarketswillreachthislevel,we

believetheycangetsignificantlycloserto

UKlevels.Ourmostmatureconversion

marketGermanyiscurrentlyaroundathird

thepairspercapitaoftheUK.Morerecently

convertedmarketsItalyandSpainstandat

10and4respectively.Thisfurtherhighlights

thegrowthopportunitystilltocomefrom

thisstrategy.

1. GermanyimpactedbyreducedEMEAetailervolumesinFY23andFY24.

28 DR. MARTENS PLC ANNUAL REPORT 2024

CONVERSIONS

New store in Turin, Italy

LINKS TO STRATEGY

1. GermanyimpactedbyreducedEMEAetailervolumesinFY23andFY24.

STRATEGIC REPORT

29DR. MARTENS PLC ANNUAL REPORT 2024

FY24FY23FY22FY21

£773.0m

£908.3m

£877.1m

£1,000.3m

FY24FY23FY22FY21

£222.9m

£263.0m

£197.5m

£245.0m

FY24FY23FY22FY21

28.8%

29.0%

22.5%

24.5%

FY24FY23FY22FY21

£69.7m

£214.3m

£93.0m

£159.4m

FY24FY23FY22FY21

3.5p

18.1p

7.0p

12.9p

FY24FY23FY22FY21

£234.1m

£208.1m

£157.1

£48.4m

105%

79%

80%

20%

FINANCIAL

REVENUE

What are we measuring and why?

Revenuearisesfromthesaleofproductsto

consumersandisstatedexcludingvalueadded

taxandothersales-relatedtaxes.Revenue

growthiscrucialforsustainablelong-term

growthandisdriventhroughincreasingthe

numberofpairssold,attractingandretaining

customersandtheshifttoDTC.

Performance

Revenuedecreasedby12%inFY24,drivenby

weakerwholesale,particularlyintheUSA.

EBITDA

1,2

What are we measuring and why?

EBITDAistheGroup’skeyprofitmeasureto

showperformancefromoperations.EBITDA

demonstratesourabilitytogrowcashprofits

anddeliverareturnonourrevenue.

Performance

EBITDAfellby19%,mainlyduetotheimpact

oflowerwholesalerevenuesandcontinued

investmentintothebusiness.

EBITDA MARGIN

1,2

What are we measuring and why?

EBITDAmarginexpressesEBITDAasa

percentageofrevenue.OurEBITDAmargin

demonstrateshoweffectiveweareat

convertingrevenuesintoprofits,andassessing

operationalperformanceandefficiencies.

Performance

EBITDAmargindeclinedby2.0%ptsto22.5%

duetolowerthanexpectedrevenuescombined

withanincreasingoperatingcostbase.

1. AlternativePerformanceMeasuresasdefinedintheGlossaryonpages220and221.

2. Beforeexceptionalitems.

3. RefertoFinancereviewandnote10oftheConsolidatedFinancialStatements

forfurtherinformationonEPSanddilutedEPS.

4. Beforeexceptionalitems.

PBT

What are we measuring and why?

PBTshowstheGroup’sprofitperformance

beforeexceptionalcostsandafterfinancing

costs.PBTincludesdepreciation,amortisation

andnetinterestcostsandthereforeprovides

anotherviewofourprofitability.

Performance

PBTdeclinedby42%duetolowerEBITDA,

higherdepreciationandamortisationfromnew

storesandITinvestmentprojects,andhigher

netinterestcostsduetoincreaseddebt.

BASIC EPS

1,3

What are we measuring and why?

EPSisprofitaftertaxpershareinissue

andindicateshowmuchprofitacompany

generatesforeachshareofitsstock.EPS

representstheearningsachievedforeach

shareandovertimegrowthofthismetric

shouldresultinincreasedshareholdervalue.

Performance

BasicEPSdeclinedby46%.Thiswasdue

tothelowerprofitsachievedintheyear.

OPERATING CASH FLOW

1,4

What are we measuring and why?

OperatingcashflowshowstheGroup’scashfrom

operationsaftercapitalexpenditure.Thelevelof

operatingcashflowgeneratedbythebusinessis

importantinassessingtheunderlyingqualityof

performanceandthesustainabilityofgrowth.

Performance

OperatingcashflowasapercentageofEBITDA

was80%,a60%ptsincreasecomparedto

FY23.Thisisduetolowerworkingcapital

outflowduetoreducedpurchases.

LINKS TO STRATEGIC PILLAR:

MEASURING OUR

PERFORMANCE

Operatingcashconversion.

KEY ASSOCIATED RISKS:

LINKS TO STRATEGIC PILLAR:

KEY ASSOCIATED RISKS:

LINKS TO STRATEGIC PILLAR:

KEY ASSOCIATED RISKS:

LINKS TO STRATEGIC PILLAR:

KEY ASSOCIATED RISKS:

LINKS TO STRATEGIC PILLAR:

KEY ASSOCIATED RISKS:

LINKS TO STRATEGIC PILLAR:

KEY ASSOCIATED RISKS:

30 DR. MARTENS PLC ANNUAL REPORT 2024

KEY PERFORMANCE INDICATORS

FY24FY23FY22FY21

12.7m

14.1m

11.5m

13.8m

FY24FY23FY22FY21

43%

49%

61%

52%

FY24FY23FY22FY21

135

158

239

204

FY24FY23FY22FY21

30%

29%

32%

28%

TheGroupmonitorsseveralkeymetricstotrackthefinancialandnon-financial

performanceofitsbusiness.APMs

areusedaswebelievetheyprovideadditional

usefulinformationonunderlyingtrends.TheAPMsarenotdefinedbyIFRSand

thereforemaynotbedirectlycomparablewithothercompanies’APMs.

REMUNERATION REPORT P119

NON-FINANCIAL

PAIRS DIRECT-TO-CONSUMER MIX

What are we measuring and why?

DTCmixshowsthecombinedecommerce

andretailrevenuesasapercentageoftotal

revenue.WeaimtogrowDTCrevenuetoat

least60%mixinthemediumterm,andthis

metricthereforedemonstratesourprogress

againstthistarget.

Performance

DTCmiximprovedby9ptsto61%driven

bystrongretailgrowthandlowerwholesale

revenues.

OWN STORES

What are we measuring and why?

Ownstoresshowsthetotalnumberofretail

storestheGroupdirectlyoperatesglobally.

Increasingourstoreestatedrivesretailand

ecommercerevenuegrowthandistherefore

akeydrivertoincreaseDTCmix.

Performance

DuringFY24,weopened46newstoresand

closed11storesandendedtheyearwith239

ownedstores.

ECOMMERCE MIX

What are we measuring and why?

Ecommercemixshowsthetotalecommerce

revenueasapercentageoftotalrevenue.

Weaimtogrowecommercerevenueinthe

mediumtermandthismetrictherefore

demonstratesourprogressagainstthistarget.

Performance

Ecommercemixincreasedby4%ptsto32%

howeverthiswasduetothedeclineinGroup

revenue;ecommercerevenuewasdown1%

year-on-year.

What are we measuring and why?

Thenumberofboots,shoesandsandalssold

duringtheyear,throughallchannels.Wehave

avolume-ledgrowthstrategyandtherefore

pairsisakeymetricforourbusiness.

Performance

InFY24,wesold11.5millionpairs,a17%

declinecomparedwithFY23.Thiswasdueto

weaknessinwholesale,withDTCpairsup7%.

OUR STRATEGY P22

RISK MANAGEMENT AND

OUR PRINCIPAL RISKS P38

Key associated risks:

Brand and product

Social and environmental

People, culture and change

Supply chain

Information and cyber security

Financial

Legal and compliance

Macroeconomic uncertainty

Linkage to remuneration

METRICS DIRECTLY LINKED

Wemeasureprofitabilitybothwithinour

short-termincentive,theGlobalBonus

Scheme(GBS),andalsoourLong

TermIncentivePlan(LTIP).75%ofthe

GBSisassessedonstretchingPBT

growthtargetsandtheLTIPisbasedon

underlyingEPSgrowthtargets.Both

PBTandEPSarecomprehensive

profitabilitymeasureswhichareclosely

alignedwithshareholdervaluecreation.

KEY DRIVERS INDIRECTLY LINKED

Ofthekeyfinancialdrivers,revenue

growth,EBITDA,EBITDAmarginand

cashflowallhelptodriveprofitand

long-termsustainablebusinessgrowth.

Whilethesearenotdirectlyidentifiedas

metricswithintheGBSandLTIP,they

feedintothemetricsofPBTandEPS

usedinourincentivearrangements.

Pairsindicatethesuccessofour

volume-ledgrowthstrategy.Growing

ecommercemix,DTCmixandopening

moreownstoresarealsoindirectly

incentivisedwithinremuneration.

Progressagainstthesetargets,whichare

moreprofitablechannelsofrevenue,will

enhanceourprofitabilityandunderlying

shareholdervalue,whenconsidered

alongsideabsoluterevenuegrowth.

Links to strategy:

Direct-to-consumer first

Organisational and operational excellence

Consumer connection

Support brand expansion with B2B

LINKS TO STRATEGIC PILLAR:

KEY ASSOCIATED RISKS:

LINKS TO STRATEGIC PILLAR:

KEY ASSOCIATED RISKS:

LINKS TO STRATEGIC PILLAR:

KEY ASSOCIATED RISKS:

LINKS TO STRATEGIC PILLAR:

KEY ASSOCIATED RISKS:

STRATEGIC REPORT

31DR. MARTENS PLC ANNUAL REPORT 2024

Totalrevenuedeclined12.3%(9.8%CC)

with2.4%growthinDTC(4.9%CC)offset

bya28.3%declineinwholesalerevenues

(-26.0%CC).Profitbeforetax(beforeFX

charge)was£97.2m(FY23:£170.1m),down

42.9%,reflectinglowerEBITDA,increased

depreciationandamortisationchargesdueto

continuedinvestmentsinnewstoresandIT

projects,andhigherrate-ledinterestcosts.

Earningspersharedeclinedby45.7%to7.0p.

Performance by channel

Revenuedecreasedby12.3%to£877.1m

(FY23:£1,000.3m),down9.8%onaCC

basis.DTCgrew2.4%to£533.1m(FY23:

£520.7m),up4.9%onaCCbasis,

representing61%ofrevenuemix.Wholesale

revenuesdeclined28.3%to£344.0m

(FY23:£479.6m),down26%onaCCbasis.

Thewholesalechannelwasimpactedboth

byplannedstrategicdecisionstoreduce

volumesintoEMEAetailersandceasethe

distributorcontractinChina,andveryweak

wholesaleordersinUSAduetowidespread

cautionfromwholesalecustomers.Volume,

representedbypairssold,declined17%

to11.5mpairswithallthereductionin

wholesale;DTCvolumeincreased7%.

Ecommercerevenuewasdown1.0%to

£276.3m(FY23:£279.0m)andwasup1.0%

onaCCbasiswhichrepresentedarevenue

mixof32%(FY23:28%).Goodgrowth

throughouttheyearinbothEMEA(up9.6%

CC)andAPAC(up12.5%CC),wasoffset

bycontinuedweaktradinginUSA,(down

9.9%CC).WesawtrafficgrowthinEMEA

andAPAC,whilstinUSAtrafficdeclined.

Ecommerceconversionimprovedinallthree

regions.Followingtheimplementationof

anordermanagementsystem(“OMS”)

inEMEA,wesuccessfullyrolledoutafull

omnichannelofferacrossallUKstores

withContinentalEuropetofollowinFY25.

FY24

£m

FY23

£m

% change

Actual

% change

Revenue Ecommerce 276.3 279.0 -1.0% 1.0%

Retail 256.8 241.7 6.2% 9.5%

DTC 533.1 520.7 2.4% 4.9%

Wholesale

344.0 479.6 -28.3% -26.0%

877.1 1,000.3 -12.3% -9.8%

Grossmargin 575.2 618.1 -6.9%

Opex (377.7) (373.1) 1.2%

EBITDA

197.5 245.0 -19.4%

Depreciation&Amortisation (72.3) (54.2) 33.4%

EBIT

122.2 176.2 -30.6%

Profitbeforetax(beforeFXcharge)

97.2 170.1 -42.9%

Profitbeforetax 93.0 159.4 -41.7%

Profitaftertax 69.2 128.9 -46.3%

Basicearningspershare(p) 7.0 12.9 -45.7%

Dividendpershare(p) 2.55 5.84 -56.3%

Keystatistics Pairssold(m) 11.5 13.8 -17%

No. of stores

239 204 17%

DTCmix% 61% 52% +9pts

Grossmargin% 65.6% 61.8% +3.8pts

EBITDAmargin%

22.5% 24.5% -2.0pts

1. AlternativePerformanceMeasure(APM)asdefinedintheGlossaryonpages220and221.

2. Ownstoresonstreetsandmallsoperatedunderarm’slengthleaseholdarrangements.

3. Wholesalerevenueincludingdistributorcustomers.

4. ConstantcurrencyappliesthesameexchangeratetotheFY24andFY23non-GBPresults,based

onFY24budgetedrates.

GILES WILSON

CHIEF FINANCIAL OFFICER

FINANCE REVIEW

We saw a resilient

performance in

EMEA and APAC,

whilst our USA

performance was

disappointing.

RESULTS – AT A GLANCE

32 DR. MARTENS PLC ANNUAL REPORT 2024

Retail revenuegrew6.2%to£256.8m

(FY23:£241.7m),up9.5%onaCCbasis.

Growthwasledbynewandmaturingstores

(storesopenedlastfinancialyear)across

allgeographies,withcontinuedfootfall

recoveryinEMEAandAPAC,offsetby

footfalldeclineinUSA.Wealsobenefitted

fromthetransferof14Japanfranchise

storesattheendofFY23.Duringtheyear,

weopened46newstoresandclosed11

stores,toendtheyearwith239ownstores.

Wholesale revenuewasdown28.3%to

£344.0m(FY23:£479.6m),26.0%lower

onaCCbasis.Aspreviouslyannounced,

wetookthreestrategicdecisionswhich

impactedwholesalerevenuesthisyear.

Firstly,wesignificantlyreducedthequantity

andbreadthofproductsoldintoEMEA

etailers,inordertoensurescarcityofsupply

intheregionandmigratesalestoourown

websites.Wealsoceasedsalestoour

distributorinChinaaheadofthecontract

endinginJune2023,andinUSAwe

workedwithtwolargewholesaleaccounts

whohadexcessinventory,reducing

shipmentsthroughthefirsthalfinorder

torightsizetheirinventorypositions.

Inadditiontothesestrategicdecisions,

revenueswereimpactedbywidespread

cautionamongstwholesalecustomers

intheUSA,resultinginasignificantly

weakerUSAorderbookyear-on-year.

Thetotalnumberofwholesaleaccounts

globallydecreasedto1.6kafterclosing

c.500accountsandopeningc.200

accounts.Totalrevenuesperaccount

declinedby18%.

EMEA Revenuewasdown2.5%to

£431.8m(FY23:£443.0m)anddown

3.0%onaCCbasis.DTCgrewby11.8%

(10.7%CC)withretailandecommerce

bothup11.8%(11.9%CCand9.6%CC

respectively).DTCmixgrewby7.7%pts,

withDTCgrowthinallcoremarkets(UK

andFrancebothuplowsingle-digits,with

Germany,SpainandItalyallupover25%

onaCCbasis).DTCgrowthwasoffsetby

wholesalerevenuedown19.2%as

expected,duetothestrategicdecisionto

reducevolumeandbreadthsoldtoetailers.

Duringtheyearweopened20newstores:

sixstoresinItaly,fourstoreseachin

GermanyandUK,twostoreseachinSpain

andBelgium,onestoreinFranceandour

firststoreinDenmark.Includedinthenew

storeopeningsweresixlocationsthatwere

closedandrelocatedtomoreprominent

positionsinBelgium,GermanyandUK.

EMEAEBITDAwasdown3.6%to£140.8m

(FY23:£146.1m),withEBITDAmargin

32.6%,0.4%ptslowerthanlastyear,

impactedbyforeignexchangeonpurchases

andtheopexinvestmentsincludingthe

expansionofretailstoresandinvestment

inbrandanddemandmarketing.

Americas Revenuewasdown23.9%to

£325.8m(FY23:£428.2m)(20.2%CC).

DTCrevenuewasdown6.9%withlower

footfallandtrafficinretailandecommerce

respectivelyonlypartlymitigatedbynew

andmaturingstoresandbetterconversion

acrossbothchannels.DTCmixincreased

by8.3%pts.Wholesalerevenuedeclined

32.7%onaCCbasis,partlyduetothe

strategicdecisiontomanagedown

inventoryofsomeofourlargerwholesale

customersbutalsodrivenbywidespread

cautionfromwholesalecustomersresulting

inweakerorderbooks.Wemaintaineda

disciplinedapproachtowholesale,andat

theendofthefinancialyeartheaverage

inventorypositionofourtoptenUSA

wholesalecustomerswasdownaround

aquartercomparedtotheprioryear.

Duringtheyearweopened7newstores:

twoinLAandoneineachWashingtonDC,

Miami,Philadelphia,SanAntonioand

Denver.Wealsoimprovedpicking

automationinourLosAngelesdistribution

centre(“LADC”),expandedoperational

functionalityandspaceintheNewJersey

distributioncentre(“NJDC”)andrelocated

ourCanadadistributioncentrefromthe

WestCoasttoToronto.

Performance by region

FY24

£m

FY23

£m

% change

Actual

% change

Revenue EMEA 431.8 443.0 -2.5% -3.0%

Americas 325.8 428.2 -23.9% -20.2%

APAC 119.5 129.1 -7.4% 0.5%

877.1 1,000.3 -12.3% -9.8%

EBITDA

: EMEA 140.8 146.1 -3.6%

Americas 64.4 100.1 -35.7%

APAC 31.7 33.8 -6.2%

Supportcosts

(39.4) (35.0) 12.6%

197.5 245.0 -19.4%

EBITDA

marginbyregion:

EMEA 32.6% 33.0% -0.4pts

Americas 19.8% 23.4% -3.6pts

APAC 26.5% 26.2% +0.3pts

Total

22.5% 24.5% -2.0pts

1. AlternativePerformanceMeasure(APM)asdefinedintheGlossaryonpages220and221.

2. Supportcostsrepresentgrouprelatedsupportcostsnotdirectlyattributabletoeachregion’soperationsand

includingGroupFinance,Legal,GroupHR,GlobalBrandandDesign,Directorsandothergrouponlyrelated

costsandexpenses.

AmericasEBITDAwas35.7%lowerat

£64.4m(FY23:£100.1m)withEBITDA

margin3.6%ptslowerthanlastyear,

reflectinglowerrevenuetogetherwith

additionalstoragecostsof£13.1mdueto

theelevatedinventorylevelsinthismarket.

APAC Revenuewasdown7.4%to

£119.5m(FY23:£129.1m)(+0.5%CC).

WesawlowerrevenueinChinaduetothe

plannedexitofthedistributorcontractin

June2023andinJapanwetransferred14

franchisestoresattheendoflastfinancial

year;thesetwofactorsdroveAPAC

wholesalerevenuedown24.0%ona

CCbasis.DTCrevenuesgrew18.8%,

improvingDTCmixby10.4%pts,with

bothretailandecommercegrowing

double-digits.ThiswasledbyJapanwith

DTCrevenuesup35.5%withboth

underlyinggrowthandthebenefitofthe

franchisestorestransferattheendofFY23.

Duringtheyearweopened19newstores

withsixstoreseachinJapanandSouth

Korea,fiveinChinaandtwoinHongKong.

APACEBITDAwasdown6.2%to£31.7m

(FY23:£33.8m)andEBITDAmarginup

0.3%ptsduetoincreasedmixfromJapan

(ourmostprofitablemarket),partlyoffsetby

lowerEBITDAinChina(asaresultoflower

distributorrevenueintheperiodacrossa

fixedcostbase).

STRATEGIC REPORT

33DR. MARTENS PLC ANNUAL REPORT 2024

Retail store estate

Duringtheyear,weopened46(FY23:52)newownretailstores

(viaarm’slengthleaseholdarrangements)andclosed11(FY23:6)

storesasfollows:

1 April

2023 Opened Closed

31 March

2024

EMEA: UK 33 4 (2) 35

Germany 17 4 (2) 19

France 16 1 – 17

Italy 6 6 – 12

Spain 4 2 – 6

Other 12 3 (2) 13

88 20 (6) 102

Americas: 54 7 – 61

APAC: Japan 40 6 (3) 43

China 5 5 (1) 9

SouthKorea 11 6 – 17

HongKong 6 2 (1) 7

62 19 (5) 76

Total 204 46 (11)

239

TheGroupalsotradesfrom22(FY23:28)concessioncounters

indepartmentstoresinSouthKoreaandafurther77(FY23:119)

mono-brandedfranchisestoresaroundtheworldwithnostoresin

FINANCE REVIEW CONTINUED

China(FY23:55,thedeclinebeingduetotheendofthedistributor

contract),19inJapan(FY23:16),24acrossAustraliaandNew

Zealand(FY23:20),34acrossotherSouthEastAsiacountries,

theNordicsandCanada(FY23:28).

Analysis of performance by half year

RevenueinH2wasdown17.3%to£481.3m(FY23:£581.7m)(down

14.5%CC)withEBITDAdown23.2%to£119.9m(FY23:£156.2m).

Ecommercerevenuewasup5.1%inH1anddown1.0%inH2ona

CCbasis.Inretail,revenuegrewinbothhalvesofthefinancialyear

ledbynewandmaturingstoresandcontinuedfootfallrecoveryin

bothEMEAandAPAC.BothEMEAandAPACwereimpactedby

strategicdecisions,ofreducingEMEAetailervolumesandceasing

thedistributorinChinarespectively.InAmericas,revenuewasdown

inbothhalvesasexpected,predominantlydrivenbywholesale.

H1 FY24 H2 FY24

Actual CC Actual CC

Total Revenue -5.4% -3.5% -17.3% -14.5%

Channel: Ecommerce 3.3% 5.1% -2.9% -1.0%

Retail 15.1% 17.4% 0.9% 4.6%

DTC 9.2% 11.3% -1.2% 1.5%

Wholesale

-16.5% -14.7% -40.0% - 37.4%

Region: EMEA 8.5% 7. 5% -10.0% -10.1%

Americas -17.8% -14.6% -28.3% -24.3%

APAC -10.0% -3.3% -5.2% 3.6%

1. Wholesalerevenueincludingdistributorcustomers.

Analysis of performance by quarter

DTCRevenueinQ4showedareturntogrowthat9.7%CCvsa3.2%CCdeclineinQ3,howeverthisbenefittedfromthetimingofEaster

andtheendofseasonsale,whichmovedfromQ1FY25(asistypicallythecase)toQ4FY24.RetailgrewinallquartersonaCCbasisled

bynewandmaturingstoresandcontinuedfootfallrecovery,supportedbyvolumegrowthinEMEAandAPAC.Ecommercegrewinthefirst

half,declinedinQ3,beforereturningtopositivegrowthinQ4,againhelpedbytimingchanges.

WholesalewasdowninallquartersdueacombinationofthestrategicdecisionstakeninEMEAandAPAC,togetherwiththecontinued

challengingbackdropintheUSA.

Q1 Q2 Q3 Q4

Actual CC Actual CC Actual CC Actual CC

Total Revenue -11.0% -11.2% -2.2% 1.3% -20.5% -17.9% -12.9% -9.8%

Revenue: Ecommerce 7. 3% 6.8% 0.1% 3.8% -9.3% -7.6% 9.5% 11.8%

Retail 27.4% 27. 2% 5.6% 9.5% -0.1% 2.9% 2.6% 7.4%

DTC 17.4% 17. 1% 2.9% 6.7% -5.4% -3.2% 6.2% 9.7%

Wholesale

-41.1% -41.0% -5.3% -2.1% -48.6% -46.1% -31.7% -29.3%

Region: EMEA -1.4% -2.7% 13.8% 13.1% -14.5% -14.9% -3.0% -2.6%

Americas -26.3% -26.5% -12.3% -6.3% -30.8% -26.3% -25.2% -21.9%

APAC 12.2% 16.1% -21.7% -13.9% -8.0% -1.1% -1.9% 9.0%

1. Wholesalerevenueincludingdistributorcustomers.

34 DR. MARTENS PLC ANNUAL REPORT 2024

EBITDA analysis

Gross marginimprovedby3.8ptsto65.6%withthebiggest

benefitbeingfromsupplychainsavings,togetherwiththebenefits

ofnewandmaturingstoresandpricenetCOGSinflation.Inthe

year,theaveragepriceincreasewas4.5%andCOGsinflation

wasapproximately6%.

Operating expensesincreasedby1.2%,or£4.6m,to£377.7m.

Withinthismovementwebenefittedfromsupplychainsavings,

whichwereoffsetbytheoperatingcostdragfromnewandmaturing

stores,togetherwithasmallyear-on-yearincreaseinmarketing

spend.Thesupplychainsavingsweretheresultofcontinued

goodcostcontrol,includinglowervolume-relatedcostsandretail

outboundfreightsavings.Withinouroperatingcostsweincurred

£13.1m(FY23:£14.5m)inrelationtotemporaryinventorystorage

spacerentedinLA,giventheelevatedinventorylevelsinthismarket.

EBITDAdecreasedby19.4%to£197.5m(FY23:£245.0m)

resultinginanEBITDAmargindecreaseof2.0ptsto22.5%.

Increasedcosts(asapercentageofrevenue)werepartially

offsetbysupplychainsavings.

EBITdecreasedby30.6%to£122.2masaresultofthedecline

inEBITDAtogetherwithincreaseddepreciationandamortisation.

Earnings

ThefollowingtableanalysestheresultsfortheyearfromEBITDA

toprofitbeforetax.

£m FY24 FY23

EBITDA

197.5 245.0

Depreciationandamortisation (72.3) (54.2)

Impairment – (3.9)

Othergains 1.2 –

Foreignexchangelosses (4.2) (10.7)

EBIT

122.2 176.2

Netinterestcostonbankdebt (19.4) (10.8)

Amortisationofloanissuecosts/interest

onleaseliabilities (9.8) (6.0)

Profit before tax 93.0 159.4

Tax (23.8) (30.5)

Earnings

69.2 128.9

1. AlternativePerformanceMeasure(APM)asdefinedintheGlossaryonpages220

and 221.

Profit before tax(includingFXcharge)declinedby41.7%to

£93.0m(FY23:£159.4m)withprofitaftertaxof£69.2m(FY23:

£128.9m).ThiswasprimarilyduetolowerEBITDAtogetherwith

higherdepreciationandamortisationcostsandhigherinterestcosts.

Depreciationandamortisationchargedintheperiodwas£72.3m

(FY23:£54.2m),andisanalysedasfollows:

£m FY24 FY23

Amortisationofintangibles

5.8 8.4

Depreciationofproperty,plant

andequipment

15.2 13.6

21.0 22.0

Depreciationofright-of-useassets

51.3 32.2

Total

72.3 54.2

1. MainlyrepresentedbyITrelatedspendwiththeaveragetermof5to15years.

2. Mainlyrepresentedbynewstorefitoutcostswiththeaveragetermof5years.

3. MainlyrepresentedbydepreciationofIFRS16capitalisedleaseswiththeaverage

termremainingof3.8yearsand263properties(FY23:5.1yearsand229properties).

Foreign Exchange

Dr.Martensisaglobalbrandsellingtoconsumersacrosstheworld

inmanydifferentcurrencies,withthefinancialstatementsreported

inGBP.Foreigncurrencyamountsintheprofitorlossaccountare

preparedonanaverageactualcurrencyratebasisfortheyear.These

exchangeratesarecalculatedmonthlyandappliedtorevenueand

costsgeneratedinthatmonth,suchthattheactualperformance

translatedacrosstheyearisdependentonmonthlytradingprofiles

aswellasmovementincurrencyexchangerates.Toaid

comparabilityofunderlyingperformance,wehavealsocalculated

constantcurrencyforrevenue.Thisiscalculatedbytranslating

non-sterlingrevenuesatthesameexchangerateyearonyear.

ForeignexchangeexposuresmainlyimpactingtheGroupare£/$,

£/€and£/¥.Thefollowingtablesummarisesaverageexchangerates

usedintheyear:

£/$ £/€ £/¥

FY24 FY23 % FY24 FY23 % FY24 FY23 %

H1 1.26 1.22 3% 1.16 1.17 -1% 178 163 9%

H2 1.26 1.19 6% 1.16 1.14 2% 186 163 14%

1.26 1.21 4% 1.16 1.16 0% 182 163 12%

TheGrouptakesaholisticapproachtoexchangeraterisk,

monitoringexposuresonaGroup-wide,netcashflowbasis,seeking

tomaximisenaturaloffsetswhereverpossible.WhileCOGs

purchasesfortheGrouparepredominantlydenominatedinUSD,

foreignexchangeriskonthiscurrencyispartiallyoffsetfromUSD

revenuesearnedinAmericasandfromdistributorrevenues,which

arealsolargelyUSDdenominated.Whereanetforeigncurrency

exposureisconsideredmaterial,theGroupseekstoreducevolatility

fromexchangemovementsbyusingderivativefinancialinstruments.

Duringtheperiod,a£1.5mgainwasrecordedinrevenuesrelatedto

derivativespartiallyhedgingthenetEURinflows.

Retranslationofforeigncurrencydenominatedmonetaryassets

andliabilitiesintheyearresultedinaforeignexchangelossof

£4.2m(FY23:loss£10.7m).Thiswaspredominantlyduetothe

revaluationofreceivablebalancesfollowingtheappreciationof

GBPagainstEURandUSD.

STRATEGIC REPORT

35DR. MARTENS PLC ANNUAL REPORT 2024

Interest

TheGroup’sexposuretochangesininterestratesrelatesprimarily

tocashinvestments,borrowings,andIFRS16leaseliabilities.

TotalGroupinterestcostsfortheyearwere£29.2m,£12.4mhigher

thanprioryear(FY23£16.8m)primarilyduetoincreasesinbank

debtrelatedborrowingexpensesof£22.3m(FY23:£12.7m).

Theincreasecomparedtotheprioryearwasdrivenfromahigher

benchmarkEURIBORrateandinterestcostsofthein-yeardrawn

RCFamounts.Thiswaspartiallyoffsetbya£1.3mgainonhigher

interestreceivablesfromcashinvestments.Inaddition,weincurred

higherinterestcostsonleaseliabilitiesof£3.8mduetonewstores

openedintheyear.

The tax chargewas£23.8m(FY23:£30.5m)withaneffectivetax

rateof25.6%(FY23:19.1%)whichisslightlyhigherthantheUK

corporatetaxrateof25.0%,duemainlytooverseastaxratesand

deferredtaxontemporarydifferences.Theeffectivetaxratewas

higherthanlastyearduetotheincreaseinUKtaxratefrom19.0%

to25.0%on1April2023.

Earnings per sharewas7.0p(FY23:12.9p).Thetotalnumber

ofdilutedsharesisdetailedinnote9inthefinancialstatements.

ThefollowingtablesummarisestheseEPSfigures:

FY24

pence

FY23

pence

change

Earningspershare Basic 7.0 12.9 -46%

Diluted

7.0 12.9 -46%

EPSanddilutedEPSforthecurrentandprioryeararepresentedas

thesameamountduetotheminimaldilutiveimpactofshareoptions

onthetotaldilutedsharenumber.

Operating cash flow

£m FY24 FY23

EBITDA

197.5 245.0

Increaseininventories (1.6) (133.2)

Decrease/(increase)indebtors 23.0 (6.6)

Increaseincreditors (37.7) (9.2)

Totalchangeinnetworkingcapital (16.3) (149.0)

Share-basedpayments 4.0 0.5

Capitalexpenditure (28.4) (51.2)

Operating cash flow

156.8 45.3

Operating cash flow conversion

79% 18%

1. AlternativePerformanceMeasure(APM)asdefinedintheGlossaryonpages220

and 221.

Operating cash inflowwas£156.8m(FY23:£45.3m)representinga

cashconversionofEBITDAof79%(FY2318%),inlinewithguidance.

Tradedebtordaysremainedat52days,primarilyduetocustomermix

withahigherproportionofAmericasdebtors(withdebtordaysat55)

thanEMEA(withdebtordaysat48).

Capexwas£28.4m(FY23:£51.2m)andrepresented3.2%ofrevenue

(FY23:5.1%).Thebreakdownincapexbycategoryisasfollows:

£m FY24 FY23

Retailstores 14.4 18.9

SupplyChain 2.7 19.2

IT/Tech 11.3 13.1

28.4 51.2

Net cash flow after interest

Netcashflowafterinterestcostsissummarisedbelow:

£m FY24 FY23

Operating cash flow

156.8 45.3

Netinterestpaid (17.0) (5.6)

Investment – (1.0)

Paymentofleaseliabilities (52.2) (33.9)

Taxation (18.8) (22.3)

Repurchaseofshares (50.5) –

Derivativessettlement (4.0) 3.1

Dividendspaid (57.8) (58.4)

Net cash outflow (43.5) (72.8)

Openingcash 157.5 228.0

Netcashexchangetranslation (2.9) 2.3

Closing cash

111.1 157.5

1. AlternativePerformanceMeasure(APM)asdefinedintheGlossaryonpages220

and 221.

Net interest paidwas£17.0m,higherthanFY23by£11.4mdue

tothetimingofinterestpaymentsandhigherinterestrates,which

werepartiallyoffsetbyhigherinterestreceivablesfromcash

investments.Theincreaseinleaseliabilitieswasduemainlytothe

increasednumberofretailstoresopenedintheperiodunderlease

arrangementsandincreasedspaceacrosstheDCnetwork.

Funding and Leverage

TheGroupisfundedbycash,bankdebtandequity.Furtherdetails

onthecapitalstructureanddebtaregiveninnote17ofthefinancial

statements.TheGroup’sbankdebtisdenominatedinEuroswhich

allowstheexcessEurostheGroupgeneratesfromtradingin

ContinentalEuropetofundinterestcosts.Thebankdebtfallsduefor

repaymentinfullon2February2026.TheGroupalsohasarevolving

creditfacilityof£200.0mwhichalsomatureson2February2026

with£30.0mdrawndownandsubsequentlyfullyrepaidduringthe

period.Includedinthisfacilityisacommittedlineof£3.4musedfor

guaranteearrangementsprimarilyforlandlordrentguarantees.

Thegroupfinancingarrangementsaresubjecttoatotalnetleverage

covenanttesteverysixmonths.Thetotalnetleveragetestiscalculated

withafull12monthsofEBITDAandnetdebtbeinginclusiveofIFRS16

leaseliabilitiesatthebalancesheetdate.At31March2024the

Grouphadtotalnetleverageof1.8times(FY23:1.2times).

FINANCE REVIEW CONTINUED

36 DR. MARTENS PLC ANNUAL REPORT 2024

Balance sheet

£m

31 March

2024

31 March

2023

Freeholdproperty 7.0 7.4

Right-of-useassets 173.5 144.1

Otherfixedassets 81.7 78.8

Inventory 254.6 2 5 7.8

Debtors 70.4 92.2

Creditors

(100.7) (133.7)

Workingcapital 224.3 216.3

Other

(1.5) 5.2

Operating net assets 485.0 451.8

Goodwill 240.7 240.7

Cash 111.1 157.5

Bankdebt (288.6) (296.8)

Unamortisedbankfees 2.3 3.4

Leaseliabilities (182.3) (152.4)

Net assets

368.2 404.2

1. Otherincludesinvestments,deferredtaxassets,incometaxassets,andprovisions.

2. Includesbankinterestof£8.4m(FY23:£6.0m).

Net Debt

is summarised below:

£m

31 March

2024

31 March

2023

Bankloans (286.3) (293.4)

Cash 111.1 157.5

Netbankloans (175.2) (135.9)

Leaseliabilities (182.3) (152.4)

Net Debt

(3 57.5) (288.3)

1. AlternativePerformanceMeasure(APM)asdefinedintheGlossaryonpages220

and 221.

Inventory

Giventhehighproportionofcontinuityproductswesell,withfour

outoffivepairsbeingblackandhavingastrongproductmargin

structure,wehaveminimalmarkdownriskbelowcost.Inventory

levelsarecurrentlyatelevatedlevelsinourAmericasbusiness.

Asaresultwehavereducedpurchasesfortheyearaheadand

aretargetingareductionininventoryinFY25.

31 March

2024

31 March

2023

Inventory(£m) 254.6 257. 8

Turn(x)

1.2x 1.5x

Weekscover

44 35

1. CalculatedashistoricLTMCOGSdividedbyinventory.

2. Calculatedas52weeksdividedbystockturn.

Equityof£368.2mcanbeanalysedasfollows:

£m

31 March

2024

Sharecapital 9.6

Hedgingreserve 0.9

Capitalredemptionreserve 0.4

Mergerreserve (1,400.0)

Non-UKtranslationreserve 9.7

Retainedearnings 1 ,747.6

Equity

368.2

Returns to Shareholders

Ourcapitalallocationphilosophyguidesourviewofreturns

toshareholdersandusageofexcesscash.Thefirstpriorityfor

investmentisintothebusinessandwewillcontinuetoinvestina

targetedmannertosupportlong-termgrowthandresilienceofthe

Group.Thisismainlyrepresentedbyinvestmentintomarketing,

logistics,people,systemsandinventory.Beyondthis,ourpriority

istoreturnexcesscashtoshareholders,througharegulardividend

and,whenpossible,furtherreturns.

Dividends

TheBoardhasproposed,subjecttoshareholderapproval,afinal

dividendof0.99p,takingthetotaldividendforFY24,includingthe

interimdividendof1.56p,to2.55p,a35%payoutratio.Whilstthisis

ayear-on-yearreductiongiventhehigherpayoutinFY23andlower

earningsachievedthisyear,the35%payoutforFY24isatthetopof

thepolicyrange.TheBoard’sintentionistoholdtheFY25dividend

flatinabsoluteterms,beforereturningtoanearningspayoutinline

withourdividendpolicy(of25%to35%payout)inFY26onwards.

Goingforwards,theBoardisalsoadoptingaconsistentapproachto

settingtheinterimdividend,withthisdividendsetatone-thirdofthe

previousyear’stotaldividend.Wearealsoadjustingthepayment

datesforthedividends,tobetterreflectthetradingcashprofileofthe

Group,andthereforethefinaldividendwillbepaidinearlyOctober.

ThefinaldividendforFY24willbepaidtoshareholdersontheregister

asat30August2024withpaymenton1October2024.

£m FY24 FY23

Earnings 69.2 128.9

Interimdividend(declaredandpaid):1.56p

(FY23:1.56p) 15.0 15.6

Finaldividend(proposed):0.99p

(FY23:4.28p) 9.5 42.8

Total dividend (paid and proposed): 2.55p

(FY23: 5.84p) 24.5 58.4

Payout ratio % 35% 45%

Share Buyback

Duringtheyearto31March2024theGrouprepurchased39.9m

shares.Thecashoutflowwas£50.5m(includingtransaction

costsof£0.5m)pursuanttothesharebuybackschemethatwas

announcedon14July2023andconcludedon19December2023.

Forfurtherdetailspleaserefertonotes23and24ofthe

ConsolidatedFinancialStatements.

GILES WILSON

CHIEFFINANCIALOFFICER

29May2024

STRATEGIC REPORT

37DR. MARTENS PLC ANNUAL REPORT 2024

RISK GOVERNANCE AND OVERSIGHT KEY COMPONENTS

BOARD

GROUP LEADERSHIP

REPORTING AND

ESCALATION

DIRECTION AND

OVERSIGHT

RESPONSIBILITIES

Strategic oversight responsibility for ensuring risks are identified and managed

Robust assessment of principal risks, considering emerging risks and overall risk appetite

RESPONSIBILITIES

Executive ownership of key risk areas

Crisis Management Framework with specific Cyber Incident Management playbook

Leads the key first and second line activities, including Finance, Legal and Compliance,

Technology and Human Resources

Functions and projects

• Functional risk registers (e.g.

including IT and Cyber, and

Global Supply Chain), with

reporting and escalation to

Group Risk Register

• Strategic Portfolio Planning

team and forum to prioritise

projects and monitor risk

Risk themes

• Working groups established

with focus on specific risk

areas, including counter-

fraud, artificial intelligence,

third-party risk, policies and

training

Audit and Risk Committee

Supports Board on risk and assurance,

including ‘risk deep dives’

Independent reports

from third line assurance

activities – internal

audit

Regional Risk

Committees

(Americas, APAC

and EMEA)

with reporting

into ORC

Operational Risk Committee (ORC)

Oversees Group Risk Register

Oversees Crisis Management Framework

EFFECTIVE RISK

MANAGEMENT

ThediagrambelowshowsthekeyelementsoftheDr.Martensapproachtoriskgovernance,includingthe‘bottom-up’and‘top-down’

aspects.Inidentifyingrisks,weconsiderfourbroadcategoriesofrisk:strategic,operational,financial,andlegalandcompliance.

Effective risk management drives

better commercial decisions, protects

our assets, reputation and brand, and

supports delivery of our strategy and

sustainable business growth.

MATT KETTEL

HEAD OF INTERNAL AUDIT AND RISK

RISK MANAGEMENT AND OUR PRINCIPAL RISKS

REGIONS, FUNCTIONS AND PROJECTS

38 DR. MARTENS PLC ANNUAL REPORT 2024

Risk management approach

Ourapproachtoriskisanintegratedpartof

theoverallgovernanceandmanagementof

theGroup,assetoutinmoredetailinthe

Governancesection,particularlytheAudit

andRiskCommitteeReportonpage134.

ThroughoutFY24,wehavecontinuedto

matureandembedourriskmanagement

process,whichissetoutinmoredetailbelow.

Insettingourstrategicpriorities,wetake

intoaccounthorizonscanningandexternal

thinkingandtheseinsightsalsofeedinto

howriskisidentified,assessedand

managed,includingforemergingrisks.We

considerrisksoverdifferenttimeframes,

whichalsoinfluencesresponseandpriority

forundertakingfurtheranalysisand

potentialaction.

TheGroupfollowsthe‘threelinesmodel’

torisk,internalcontrolandassurance.

Operationalmanagementandourpeopleare

theCompany’sfirstline,astheyareprimarily

responsibleforthedirectmanagementofrisk

andensuringthatappropriatemitigating

controlsareinplaceandoperatingeffectively.

Thesecondlineisformedbytheinternal

complianceandoversightfunctionssuchas

Finance,LegalandCompliance,Technology

andHumanResources.Thethirdline

includestheInternalAuditteam,reporting

totheAuditandRiskCommittee.

Risk appetite

Werecognisetheneedforinformed

risk-takinginordertodeliversustainable

andprofitablebusinessgrowth,andourrisk

appetitevariesacrossdifferentprincipal

risks,whicharesetoutonpages40to43.

Ourriskappetiteacrossdifferentareas

informstheGroup’sriskandcontrol

frameworkandday-to-daycontrolactivities.

Examplesoftheseactivitiesinclude:

• Adherencetodelegationofauthority,

includingcommercial,financialandlegal

decisionsandapprovals

• Ongoingbusinessperformance

monitoring,includingmonthlyreviews

• Strategyandplanning(annualand

five-yearplans)

• Developmentofcontingencyplans

andconsiderationofbestandworst

casescenarios

• Identificationandongoingmonitoring

ofriskthroughGroupandRegional

RiskCommittees

• Analysisofappropriateinsurancecover

againstriskappetite

• Financialcontrolsdefinedandbuiltinto

keysystems,includingdevelopingthese

tomeetpotentialfuturerequirementssuch

asUKcorporategovernancereforms

• Compliancepolicies,guidanceandtraining

Principal risks

Foreachprincipalrisk,wehavereviewed

andupdatedtheriskdescriptions,impacts

oftherisks,riskappetiteandmitigating

actions.Wehavealsoassessedthelevelof

riskcomparedtothepreviousfinancialyear.

ForFY24,throughtheBoardandAuditand

RiskCommitteereviews,anewprincipal

risk,‘Macroeconomicuncertainty’,hasbeen

added.Althoughitwaspreviouslyreferenced

withinabroader‘Financial’principalrisk,

giventheongoingchallengesand

uncertaintiesrelatedtothemacroeconomic

environment,thishasbeendisclosedasa

separateprincipalrisk.

TheBoardconfirmsthatithascarriedout

arobustassessmentoftheCompany’s

emergingandprincipalrisks.Setoutbelow

istheBoard’sviewoftheprincipalrisks

currentlyfacingtheCompany,alongwith

examplesofhowtheymightimpactusand

anexplanationofhowtherisksare

managedormitigated.Wealsoindicatethe

linktoourstrategicprioritiesonpages22

to29.AnexplanationofhowtheCompany

managesfinancialrisksisalsoprovided

innote21tothefinancialstatements.

WerecognisethattheGroupisexposed

toriskswiderthanthoselisted.However,

wehavedisclosedthosethatwebelieve

arelikelytohavethegreatestimpacton

theGroupdeliveringitsstrategicobjectives.

Alongsidethenewprincipalrisk,

‘Macroeconomicuncertainty’,thereare

tworiskswherethepotentialimpacthas

increased,andoneriskwherethepotential

impacthasdecreased.Wehaveindicated

thetrendforeachrisk,basedonthe

changesfromtheprioryear,aswellas

lookingforwardstofuturepotential

changesinrisk.

MACROECONOMIC UNCERTAINTY

Giventheprolongedchallengesand

uncertaintywiththemacroeconomic

environment,thishasbeendisclosedasa

separateprincipalrisk.Theongoingcost-of-

livingcrisis,geopoliticaluncertaintyin

Israel/GazaandRussia/Ukraine,coupled

withupcomingelectionsacrossmajor

globalpowers,arelikelytohavea

continuedimpactonmacroeconomic

conditionsinourkeymarkets.

BRAND AND PRODUCT

Coupledwiththeexternalmacroeconomic

uncertaintyandinflationarypressures

reducingconsumerdemandandspend,

thebrandandproductriskhasincreased,

impactedbythechallengingmarket

conditions,particularlyintheUSA.AChief

BrandOfficerwasappointedinFebruary

2024,withaleadingroleinsettingthe

overallbrandstrategy,visionanddirection

forthenextphaseofgrowth.

SUPPLY CHAIN

Thepotentialimpactofsupplychain

riskhasdecreasedasaresultofgood

progressmadeinfurtherimprovingthe

resilienceandagilityofsupplychain

activitiesfromprioryear.Thisincludes

improvedmanagementoftheUSA

distributioncentreactivitiesandthe

successfulrelocationoftheCanadian

distributioncentre.

PEOPLE, CULTURE AND CHANGE

Withchangesinseniorleadership,thereis

anincreaseinthisrisk.Whilechangesin

leadershipcancreateuncertaintyamongst

thewiderorganisation,theyalsoprovidea

goodopportunityforrefreshandtransition.

CHANGES TO PRINCIPAL

RISKS IN THE YEAR

CLIMATE RISK

In FY24, we continued to build on the work of

previous years to develop our understanding of

the potential impact of climate change risk on

Dr. Martens. Having carried out this analysis,

which is set out in more detail on page 82 in our

TCFD Report, we continue to consider climate

risk as a key component of the social and

environmental risk, rather than a separate

principal risk. We also recognise that climate

change is one of the drivers of other principal

risks, including brand and product, supply

chain, and legal and compliance.

The approach to identifying and assessing

climate risks and opportunities is broadly

consistent with the way we identify and prioritise

all risks, considering impact and likelihood of a

number of potential risk events. However, we

recognise that for climate risks the timeframes

are often longer than many other risks.

Therefore, as well as estimated likelihood of a

risk event occurring, we considered the velocity

of risks, i.e. the potential timeframe for when a

risk event might occur. Our priority climate-

related risks and opportunities are set out in

more detail in our TCFD section.

STRATEGIC REPORT

39DR. MARTENS PLC ANNUAL REPORT 2024

Risk trend:

No change Increased Decreased

Slight increase

Slight decrease

RISK MANAGEMENT AND OUR PRINCIPAL RISKS CONTINUED

BRAND AND PRODUCT

Wefailtodevelopandprotectour

brandandproduct

SOCIAL AND

ENVIRONMENTAL

Oursustainabilitystrategyand

programmefailtodeliverordonot

meetstakeholderexpectations

Risk impact

• Brandisnolongerperceivedasrelevantwithconsumers

• Negativemediaorsocialmediacoveragedamagesourbrand

• Counterfeitorlookalikeproductimpactsoursalesandbrand

• Seriousqualityorproductregulatorycomplianceissuesresulting

inproductrecallorcompensationtoconsumers

How we manage the risk

• Researchonconsumerinsightsandtrends

• Monitoringofbrandhealthbykeymarketandconsumersegment

• Marketingactivitytomaximisebrandvalueandexposure,for

example,thenewbrandandmarketingplatform,MadeStrong

• Focusedbrandinvestmentinkeyglobalcities,forexample,the

14XXlaunchandactivationplan

• Productinnovationtostayonestepaheadandalleviateany

counterfeitrisk

• ChiefBrandOfficerappointed

• Monitoringandrespondingtosocialmediaandcustomer

serviceissues

• Intellectualpropertyexpertisewithrobustenforcementstrategy

• Robustqualityandtestingprocessonproduct

Risk appetite

• Balancedriskappetiteinordertoinnovate,deliverourstrategy

andstayrelevantwithconsumers

• Supportedbyprocessestoavoidormitigateanybrandand

intellectualpropertyprotectionrisk,wherepossible

Read more about this risk

• Ourbrandandproductsonpage4

• Howwecreatevalueonpages16and17

• Stakeholderengagement–Consumersonpage20

• Deliveringagainstourstrategyonpages22and23

• Sustainability–Productonpages56to62

Risk impact

• Non-complianceorreputationalconcernsinsupplychain

potentiallydamagethebrandresultinginlowersales

• Ourproductandbusinessactivitiesfailtokeeppacewith

consumers’socialandenvironmentalexpectations,resulting

inlowersalesgrowth

• Emergingrisk:Climatechangeimpactsuponourbusiness

orasaresultofourbusinessoperations

How we manage the risk

• Sustainabilityprogrammeandsupportingroadmap

withoversightbytheSustainabilityCommittee

• Widerangeofstakeholdersinvolvedindeveloping

anddeliveringoursustainabilityprogramme

• Externaladvicetoensureweadoptgoodpractices,for

example,humanrightsimpactanalysisperformedwithinput

fromexternaladvisers

• Investmentinatooltoassistwithcarbonemissionsdata

managementandanalysis

• SuccessfullaunchofrepairserviceintheUK,ReWair,ournew

resaleplatformintheUSA,andGenixNappareclaimedleather

• Externalassuranceoverkeythird-partymanufacturers,

includinghumanrightsstandards,modernslaverycompliance

andourSupplierCodeofConduct

• EnvironmentalcertificationforMadeInEnglandfactory

• Furtherdevelopinganassessmentofclimaterisksandpotential

impactsandmitigations

Risk appetite

• Lowriskappetiteconsideringconsumerexpectationsandclimate

changeimpacts

• Thelonger-termnatureofsomesustainabilityrisksandthelevel

ofuncertaintyassociatedwiththeiroccurrenceandimpactmeans

thatweacceptahigherlevelofrisk

Read more about this risk

• Stakeholderengagementonpages18to21

• Sustainabilitysectiononpages46to74

Change from FY23 Change from FY23

40 DR. MARTENS PLC ANNUAL REPORT 2024

Links to strategy:

Direct-to-consumer first

Organisational and operational excellence

Consumer connection Support brand expansion with B2B

PEOPLE, CULTURE

AND CHANGE

Wefailtoattract,retainanddevelop

talentandcapabilitiesrequired

todeliverbusinessstrategy

SUPPLY CHAIN

Wefailtodeliverthesupplychain

activityrequiredtosupportbusiness

growthandconsumerdemand

Risk impact

• Failuretoattract,retainanddeveloptalentandcapabilities

requiredtodeliverbusinessstrategy

• Safetyandsecurityissuesaffectingourstafforcustomers

• Levelofongoingtransformationandchangemeansthat

programmesandprojectsarenotsuccessfulorbusiness

asusualactivitiesarenegativelyimpacted

• Culturedoesnotsuccessfullyevolveasbusinessgrows

How we manage the risk

• Rigorousprioritisationofprojectsandprogrammes,facilitated

bytheStrategicPortfolioPlanningTeam,toensuresuccessful

executionoftheDOCSstrategy

• Quarterlystrategicportfolioreviewtogoverndeliveryof

strategicprojects

• Seniorleadershipmonitoringandoversightofallsignificant

changeprogrammes

• Diversity,equityandinclusionprogrammewith

dedicatedresources

• Regularengagementemployeesurveyswithactionplans

• Allemployeeshareschemetoallowemployeestoshare

inthefuturesuccessofthebusiness

• Talentmanagementprocess

• Developmentofleadershipbehavioursframework

• Successionplanningassessmentandprocess

• Inductionandonboardingprocess

Risk appetite

• Overallbalancedriskappetiteinordertogrow,innovate

andrespondtonewchallengesandopportunities

• Verylowriskappetiteforpeoplesafetyrisks

Read more about this risk

• Stakeholderengagement–Ourpeopleonpage19

• Sustainability–Peopleonpages63to72

• NominationCommitteeReportonpages108to115

• Section172Reportonpages18to21

Risk impact

• Capacityrestrictionsinmanufacturinganddistribution

• Globaltraderestrictionsandduties

• Logisticsandshippingdisruptioncausinganincreasein

operatingcosts

• Rawmaterialpricesincreaseourcostofproduction

How we manage the risk

• Diversifiedsupplierbaseacrossdifferentmarkets

• Establishedalternativesuppliersandabilitytosourceadditional

capacityifrequired

• Effectivepartnershipandrelationshipmanagementwiththirdparties

• Externalassuranceoverkeythird-partysuppliers

• Rigorousforwardplanningincludingcontingencyfor

unexpectedevents

• Furtherinvestmentinimprovedsystems

• Reviewofregulatorylandscapeaffectingrawmaterials

• Negotiatedfixedratesandcapacitywithcarriers

• Warehousinganddistributioncapacityadjustedtomeet

forecast demand

Risk appetite

• Moderateriskappetiteforthisrisk,asastableandresilientsupply

chainisnecessaryfordeliveringourcoreproductstomeet

consumerdemandandsupportbusinessgrowth

• Theriskismitigatedthroughageographicspreadoffactoriesand

managementofstock.However,itisrecognisedthereisabalance

betweentheinvestmentrequiredtoreduceriskandtheamount

ofriskanduncertaintyweacceptduetoexternalfactorsthatare

largelyoutsideourdirectcontrol

Read more about this risk

• Stakeholderengagement–Suppliersonpage21

• Sustainability–Responsiblymanagingoursupplychainonpages

64and65

• Ourstrategyinaction–Enhancingoursupplychainonpages24

and25

• Sustainability–Oursupplychainonpage55

Change from FY23 Change from FY23

STRATEGIC REPORT

41DR. MARTENS PLC ANNUAL REPORT 2024

Risk trend:

No change Increased Decreased

Slight increase

Slight decrease

RISK MANAGEMENT AND OUR PRINCIPAL RISKS CONTINUED

INFORMATION AND

CYBER SECURITY

Wefailtomaintainthe

confidentiality,integrityand

availabilityofkeyinformation

FINANCIAL

Wefailtoadequatelyforecastand

managefinancialrisks,including

meetingexternalreporting

requirements

Risk impact

• EcommerceorotherkeyITsystemsarethetargetofcyberhacking

orprolongeddisruptionwithpotentialtonegativelyimpactrevenue

andoperatingcosts

• TheftorlossofsensitiveCompany,consumeroremployeedata,

resultinginnegativereputationalimpactandpotentialfinesand

legalcosts

• Prolongedsystemoutagemayresultinfailuretodeliveronkey

businessactivities

How we manage the risk

• DedicatedGlobalSecurityTeam

• ContinuedexecutionoftheCyberSecurityprogrammeandstrategy

• Maturingidentitymanagement–privilegedaccountmanagement

(PAM)andmulti-factorauthentication(MFA)atalllevels

• ImplementationofnewManagedDetectionandResponse

(MXDR)service,providingend-to-endsecurityvisibility

• Activemonitoringofcorebusinessapplicationsand

end-userdevices

• Cyberriskmaturitymeasuredagainstrecognisedframework

(NIST–NationalInstituteofStandardsandTechnology)with

targetstodrivecontinuousimprovement

• Cyberincidentresponseprocessmanagedthroughexternal

partnersandGlobalSecurity

• Third-partysuppliermanagementthroughvendorrisk

assessmentreviews

Risk appetite

• Lowriskappetiteforthisriskasweseektominimisethelikelihood

andimpactofanybusiness-criticaltechnologyfailure

• Itisrecognisedthatthereisacost-benefittrade-offinmitigating

cyberthreatsandwewillthereforeacceptalowlevelofriskrather

thanattemptingtoeliminateallrisk

• Verylowriskappetitefordataprivacy,asweaimtoprotectourdata

robustlyandinlinewithprivacyregulationsandrecognisedpractice

Read more about this risk

• AuditandRiskCommitteeReportonpages134to143

Risk impact

• Foreignexchangemovementsareunfavourableandimpact

liquidityandcashflow

• Interestrateriskonexternalbankdebtwithapotentialriskofbreach

ofcovenants

• Potentialincreaseintheriskofinternalorexternalfraud

• Failuretomeetforecastsandfinancialguidancetothemarketcan

negativelyimpactsharepriceandinvestorconfidence

• Non-compliancewithfinancialreportingrequirementsandinternal

controlattestations

How we manage the risk

• Robustfinancialmanagementframeworkwithdetailedreporting

andforecasting

• Detailedcashflowforecastingincludingmonitoringcompliance

withcovenants

• SinglefinanceERPsystemacrossmajorityofmarkets

• Selectedhedgingofforeignexchange

• Continuedfocusoninternalcontrolsoverfinancialreporting

• Fraudriskassessmentwithaccountabilityforkeyfraudrisks

• Dedicatedresourcetodealwithpaymentrelatedfraud

Risk appetite

• Lowriskappetiteforthisriskandproactivelymanageit

througharangeofmethods,includingarobustfinancial

managementframework

• Thepotentialnegativeimpactonthebusinessfromafinancial

failurereinforcesourcommitmenttoimplementandmaintain

strongfinancialreportingandinternalcontrolmeasuresacross

thebusiness

Read more about this risk

• Financereviewonpages32to37

• AuditandRiskCommitteeReportonpages134to143

• Note21(Financialinstruments)tothefinancialstatements

onpages191to194

Change from FY23 Change from FY23

42 DR. MARTENS PLC ANNUAL REPORT 2024

NEW

Links to strategy:

Direct-to-consumer first

Organisational and operational excellence

Consumer connection Support brand expansion with B2B

LEGAL AND COMPLIANCE

Wefailtocomplywithkeylaws

andregulations

MACROECONOMIC

UNCERTAINTY

Wefailtomanageandeffectively

respondtochanging

macroeconomicconditions

Risk impact

• Potentialincreaseintheriskofbriberyorcorruption

• Tradesanctionsnon-compliance

• Anti-competitivebehaviour

• Dataprotectionnon-compliance

• Potentialfinesandreputationaldamage

How we manage the risk

• Positivetonefromthetopcascadeddowntoteamsandemployees

• Codeofconduct(theDOCtrine)sharedwithallemployees

• Policies,proceduresandmandatorytrainingcoveringkey

compliancerisks

• Rigorousthird-partyduediligenceprocess

• ‘SpeakUp’processfacilitatedbyanindependentthirdparty

• DedicatedCompliance,andHealth&SafetyTeamandprogramme

• Dataprivacyprogrammeincludingcompliancewithapplicable

locallaws

Risk appetite

• Verylowriskappetiteforcompliancerisksandwearecommitted

toethicalandlawfulbehaviourinallwedo

• Colleaguesandbusinesspartnerswhosupportusoractonour

behalfareexpectedtotakeappropriatestepstocomplywith

applicablelawsandregulations

• Personalinformationandprivacyisrespectedandvalued,aswe

seektocomplywithlaws,rulesandregulatoryrequirementsacross

alljurisdictionsinwhichweoperate

• Lowriskappetiteforlegalrisks,recognisingtherewillbetimes

whenwetakesomecommerciallegalrisks,providedwehave

appropriateinternallegalapproval,supplementedwithexternal

advicewhererequired

Read more about this risk

• Section172StatementonMeetingtheneedsofourstakeholders

onpages18to21

• OurGovernanceframeworkonpages85to107

• AuditandRiskCommitteeReportonpages134to143

Risk impact

• Recessionorpooreconomicperformancenegativelyimpacts

onconsumerdemandandspend,resultinginlowersales

andprofitability

• Inflationnegativelyimpactsourcostbaseandconsumers’

discretionaryspend

How we manage the risk

• Monthlysalesandoperationsplanning(S&OP)reviewsand

anyresultingactions

• RegularBoardreviewofeconomiclandscape

• Negotiatedratesandcommittedavailabilitywithsuppliers

• Globalcostmanagementreviewincludingopportunitiesforfurther

productmanufacturingcostsavings

• Budgets,plansandviabilityassessmentsconsiderarangeof

scenariosincludingmacroeconomicfactors

• Proactiveresponsetoexternalthreatsandchallenges

Risk appetite

• Changesintheglobaleconomyaredifficulttopredictanditis

recognisedthatexternalfactorscanbemoredifficulttomitigate,

astheyarelargelyoutsideourdirectcontrol.Thereisabalance

betweentheinvestmentrequiredtoreduceriskandtheamount

ofriskanduncertaintyweaccept,whichrequiresustoberesilient,

whileremainingagiletorespondeffectively

Read more about this risk

• Markettrendsandopportunitiesonpage14and15

• Viabilityassessmentandgoingconcernonpages44and45

• AuditandRiskCommitteeReportonpages134to143

Change from FY23

STRATEGIC REPORT

43DR. MARTENS PLC ANNUAL REPORT 2024

Viability Statement

InaccordancewiththeUKCorporate

GovernanceCode,theDirectorshave

assessedtheviabilityoftheGroupovera

three-yearperiodto31March2027(the

‘viabilityassessmentperiod’),whichis

longerthanthe12-monthperiodfromthe

dateofsigningtheconsolidatedfinancial

statements(‘thegoingconcernperiod’),as

itprovidesanappropriatemidpointbetween

theGroup’sshortandlong-termplanning

phasesandisatypicalandcomparable

periodforabusinessofthisnaturetobe

assessedover.

Aspartofthiscomprehensiveassessment,

theDirectorshaveanalysedtheprospects

oftheGroupbyreferencetoitscurrent

financialposition,recenttradingtrendsand

momentum,detailedtradingandcashflow

forecastsincludingforecastliquidityand

covenantcompliance,strategy,economic

modelandtheprincipalrisksandmitigating

factorsdescribedonpages40to43.

Group planning process

Ournormalplanningprocessconsists

ofarigorousreviewoftheDOCSstrategy

(describedonpages22and23)bythe

GlobalLeadershipTeam(GLT)onan

annualbasis,andthisformsthebasisfor

assessingthelonger-termprospectsof

theGroup,followingwhichanupdated

long-term5yearfinancialplanisderived

andreviewedwiththeBoard.

Beforethebeginningofanewfinancialyear,

adetailed,bottom-upbudgetisprepared

withthoroughreviewanddiscussion

betweeneachregion’sPresidentandCEO,

CFO,CBOandCOO,andpresentation

anddiscussionwiththeGLT,followedby

theBoard.Wemonitorourperformance

throughthefinancialyearagainstthis

budgetandprioryearactualperformance

withaformalre-forecastprocessconducted

asrequired.Theplanningforthethree-year

periodisassessedbymonthandincludes

investments,plansandactions.

Thekeyassumptionsconsideredinall

reviewsare:

• tradingperformancebychannel;

• tradingperformancebyproduct

andgeography;

• coststoprocureandproduce

ourproducts;

• otherexpenditureplans;and

• cashgeneration.

Wealsoconsiderprojectedliquidity,

BalanceSheetstrengthandpotential

impactonshareholderreturns.

Trading outlook

InevaluatingtheviabilityoftheGroup,we

recognisetheimportanceofcontextualising

ourassessmentwithinthebroader

macroeconomicenvironment.FY24started

withacontinuingchallengingglobal

macroeconomicbackdropandweak

consumersentimentparticularlyinthe

Americas.Weareseeinggrowing

divergencesofimpactsonourcoremarkets

makingitachallengetoreturntopre-

pandemicgrowthwithinflationarypressures,

fluctuatinginterestratesandincreasedcost

oflivingexacerbatedbygeopolitical

tensions,fuelpricevolatilityandthethreat

ofclimatechange.

InadditiontothewarinUkraine,thereis

heightenedvolatilitywiththewarintheMiddle

East,stretchingleadtimestoEMEAwitha

potentialriskoffurthersupplychaindisruption

whichcouldpresentoperationalchallenges.

Containersandshipsareincreasinglylocated

ininefficientlocations.Thishasalso

contributedtorisingcostsintheglobalenergy

marketsandcommodityprices.

Ourlargestmarket,theUSA(whichmakes

upthevastmajorityofourAmericasregion)

continuestofacetwosignificantexternal

headwinds,namelyweakconsumer

confidenceimpactingspendinganda

particularlychallengingbootssegment.

Despitethis,wesawgoodDTCgrowthina

numberofourothercoremarkets,particularly

inEMEAandAPAC,resultinginDTCmix

expansionof9%ptsonafullyearbasis.There

wassolidecommercegrowthinEMEAand

APAC,withimprovedconversionandtraffic

growth.Retailgrowthwasledbynewand

maturingstoresacrossallgeographieswith

continuedfootfallgrowthinEMEAandAPAC,

althoughfootfalldeclinedintheAmericas.We

wereencouragedtoseethatprogressonthe

underlyingcorefundamentalsoftheDOCS

strategycontinuedthroughouttheyear.The

declineinrevenuewasmainlyfromlower

wholesalerevenuewithplannedvolume

reductionofetailersinEMEA,adecisionnot

torenewtheChinadistributorcontractand

significantwholesalerevenuesdeclineinthe

Americasduetoindustrywidecautionfrom

thewholesalecustomersresultinginaweak

orderbook.Grossmargingrowthwas

supportedbysupplychainsavingswithprice

increasesoffsettinginflation.

InEMEA,inflationstartedtoease,drivenby

adeclineinenergypricesandmoderating

inflationarypressures.Russia’songoingwar

againstUkrainehowevercontinuestopose

risksandremainsasourceofuncertainty.In

theperiod,climaterisks,illustratedbyextreme

weatherconditionsandunprecedented

wildfiresandfloodsintheregionsweoperate

in,alsoweighedontheoutlook.

IntheAmericas,thelandscapecontinuedto

beincreasinglyuncertainwithweakconsumer

confidenceandspending.Thefirsthalfwas

alsoimpactedbyunseasonablywarm

weather.GiventheconflictintheMiddleEast,

togetherwithpoliticaluncertaintyaheadofthe

upcomingUSelection,weexpectUSA

consumersentimenttoremainweakinthe

shorttomediumterm.

Asaresult,theDirectorswillmaintaina

cautiousoutlookandwillreactappropriately

tofurtherdevelopmentsandassociatedrisks

(acrossecommerce,retailandwholesale

channels).Theunprecedenteduncertainty

createdbythegeopoliticallandscapemakes

itchallengingtopredicthowthebusiness

willbeimpactedintheperiodahead.

TheDirectorswillremainvigilantand

continuetomonitoranumberofconsumer

confidenceandmacroeconomicmetrics

acrossallourcoremarkets.Whileglobal

expectationsareforinflationtoslowlyfallby

theendoftheyear,interestratesarestill

expectedtoremainhigh,theglobalpolitical

climateispredictedtoremaindifficultand

thisresultsincarefulfocusonthepotential

headwindsintoFY25.Aswenavigatethe

complexitiesofthecurrentenvironment,

weremainsteadfastinourcommitment

totransparency,accountabilityand

sustainability.Byembracingchangeand

fosteringresilience,weareconfidentinour

abilitytonavigatechallengesanddeliver

long-termvalueforourshareholders,

employeesandbroadercommunity.

TheDirectorsremainconfidentinthe

long-termgrowthprospects,cashgenerative

natureofthebusinessandstrongbalance

sheet,withrisksfromelevatedinventory

levelsmitigatedbytheinventoryprofileof

coreproduct(withminimalmarkdownrisk)

andplanstoreduceinventorythroughthe

secondhalfofFY25aswewillpurchaseless

thanweareplanningtosell.

TheGroupisoperationallystrongwithalong

trackrecordofconsistentlygeneratingprofits

andcashwhichisexpectedtocontinueover

theshort,mediumandlongterm.

Ourcentralplanningassumptionsare:

Micro:

• DTCgrowthinkeymarketswillcontinue

tobeledbytrafficgrowth,supportedby

newstoreopenings,andconversion

marketsinEMEA.

• USAWholesalecustomerrestockingisnot

expectedtooccurinthegoingconcern

period,however,givenrelativelylow

in-marketinventoryofWholesalecustomers,

replenishmentopportunitiesexist.

44 DR. MARTENS PLC ANNUAL REPORT 2024

VIABILITY ASSESSMENT AND GOING CONCERN

• Inventorytobereducedforforwarddemand

byMarch2025:salesvolumestobehigher

thanpurchasesthroughH2FY25.

• AllDCsandfactoriesremainopenand

operationalthroughouttheperiods.

• Maintenanceofdividendreturnsto

shareholdersandcontinuedinvestment

intheDOCSstrategy.

• Debtbulletrepaymentof£288.6min

February2026witharefinancingforthe

sameamountincluded.

Macro:

• Nomaterialchangestotheglobal

politicalsituationorsignificant

escalationsinthewarsinUkraineand

intheMiddleEast.

• Whilstheadlineinflationisexpectedto

reduce,thecostoflivingchallengewill

remain(withhighinterestrates)and

wethereforedonotexpectastep

improvementinconsumerconfidence

inEMEAortheAmericas.

Theseconservativecentralassumptions

formthebasecaseforourFY25budget,

ViabilityStatement,goingconcern

assessmentandstore,investmentand

goodwillimpairmentassessments.

Assessment of viability

TheDirectorsoftheGrouphaveconsidered

thefuturepositionbasedoncurrenttrading

andanumberofpotentialdownside

scenarioswhichmayoccur,including

theimpactofappropriateprincipalrisks

crystallising.Specifically,theprincipal

riskareasoffinancialandsupplychain

(viaclimatechangerisk)wereassessed.

Thescenariosandrisksincludeelements

oftheimpactsfromclimatechange.

Thisassessmenthasconsideredtheoverall

levelofGroupborrowingsandcovenant

requirements,theflexibilityoftheGroupto

reacttochangingmarketconditionsand

theabilitytoappropriatelymanageany

businessrisks.TheGroupcontinuestohave

satisfactoryliquidityandcovenantheadroom

undereachriskmodelledindividually.

Themainrisksandspecific‘blackswan’

eventsassessedaredetailedbelow:

• theimpactofafactoryclosureinone

keyproductiongeographicareadueto

climatechange(flooding).

• weakerconsumersentimentand

lowerdemand.

‘Top-down’sensitivityandstresstesting

includedareviewofthecashflow

projectionsandcovenantcomplianceunder

aseverebutplausiblescenarioinrelationto

thedownsidescenariosdescribedabove.

Intheunlikelyeventofthetwoabove

scenariosoccurringtogether,theGroupcan

withstandmaterialrevenuedeclineandby

applyingavailablemitigations,headroom

abovecovenantrequirementsremaininline

withexpectationandtheGroupcontinues

tohavesatisfactoryliquidityandcovenant

headroomthroughouttheperiodunder

review.ExperienceoverthreeyearsofFY22,

FY23andFY24hasindicatedminimal

wholesalebaddebtriskandminimalmargin

riskwiththeprincipalrisktomeeting

covenantcompliancebeinglowerrevenue.

Inmodellingourseverebutplausible

downsidewehaveincorporatedtheimpact

ofadoubledigitdecreaseinrevenuefrom

thebaseplanintheshortterm,withthe

baseplanalreadyrepresentingasingledigit

declineversusFY24.Underthisscenario,

certainmitigationsareavailableorare

intrinsicallylinkedtotheforecast,including

somecostandcashsavingsthat

materialiseimmediatelyiftheGroup’s

performanceisbelowbudgetandother

plannedandstandardcostreductions.

Amoreextremedownsidescenarioisnot

consideredplausible.

Areversestresstesthasalsobeenmodelled

todeterminewhatcouldbreakcovenant

complianceestimatesandliquiditybefore

mitigatingactions.Tomodelthesereverse

stressteststheimpactonrevenueofzero

covenantheadroomandzeroliquiditywas

calculatedattheendofthegoingconcern

period.Underthecovenantbreachtestitis

concludedthatthebusinesscouldweather

extremegrowthreductionswithoutmitigation

versusthebaseplan,withthebaseplan

alreadyrepresentingasingledigitdecline

versusFY24.Thebusinesswouldhaveto

experience-11%ptstorevenuegrowthinthe

goingconcernperiodbeforecovenantsare

breached.Similarly,thebusinesswouldhave

toexperience-51%ptsrevenuegrowth

reductioninthegoingconcernperiodbefore

zerocashheadroomisreached.The

Directorshaveassessedthelikelihoodof

occurrencetoberemote.

Wehavealsoassessedthequalitativeand

quantitativeimpactofclimate-relatedrisks,

asnotedinourTCFDscenarioanalysis

andabove,onassetrecoverableamounts

andconcludedthattherewouldnotbea

materialimpactonthebusinessandcash

flowsintheviabilityperiod.

Wewillcontinuetomonitortheimpact

ofthemacroeconomicbackdropand

geopoliticaleventsontheGroupinthe

countrieswhereweoperate,andweplan

tomaintainflexibilitytoreactasappropriate.

Funding

TheDirectorsalsoconsideredtheGroup

fundingarrangementsat31March2024

withcashof£111.1m,termloanof£288.6m,

aswellasavailableundrawnfacilitiesof

£194.5m.Abulletdebtrepaymentofthe

termloanof£288.6misnotdueuntil2

February2026.

TheBoardexpectstoreplaceorrenew

thesefacilitieswellaheadoftheirmaturity

andconsidersitareasonableexpectation

tosecureasimilarleveloffinancing.

TheGroupisoperationallyandfinancially

strongandhasalongtrackrecordof

consistentlygeneratingprofitsandcash,

whichisexpectedtocontinueoverthe

short,mediumandlongterm.

Statement

Basedonthisassessment,theDirectors

haveareasonableexpectationthatthe

Groupwillbeabletocontinueinoperation

andmeetitsliabilitiesastheyfalldueover

theviabilityperiodtoMarch2027.

Going concern

Thefinancialstatementshavebeen

preparedonagoingconcernbasis.The

Directors’assessmentisbasedondetailed

tradingandcashflowforecasts,including

forecastliquidityandcovenantcompliance,

usingthesameassumptionsandmethods

astheviabilityassessment.Thegoing

concernassessmentcoversatleastthe

12-monthperiodfromthedateofthe

signingofthefinancialstatements,and

thegoingconcernbasisisdependenton

theGroupmaintainingadequatelevelsof

resourcestooperateduringtheperiod.To

supportthisassessment,detailedtrading

andcashflowforecastswerepreparedfor

the16-monthperiodto30September

2025.Basedonthegoingconcern

assessment(alsoreferredtoinnote2.5

ofthefinancialstatements),theDirectors

haveareasonableexpectationthatthe

Grouphasadequateresourcestocontinue

inoperationalexistenceforatleast12

monthsfromthedateofapprovalofthese

financialstatements.Forthisreason,they

continuetoadoptthegoingconcernbasis

inpreparingthefinancialstatements.

STRATEGIC REPORT

45DR. MARTENS PLC ANNUAL REPORT 2024

TAKING

ACTION ON

SUSTAINABILITY

OUR FY24 HIGHLIGHTS

2040

Net-ZerobyFY40target

validatedbytheScience

BasedTargetsinitiative(SBTi)

 P51

93.5%

ofelectricityconsumptionfor

ourownedandoperatedUK

andEMEAsitescamefrom

renewablesources

 P52

Planet

Product People

EMISSIONS

MANAGEMENT

TOOL

usedtocalculateourfootprint

forthefirsttime

 P51

100%

ofourTier1andKeyTier2

suppliersCSRauditedmet

ourhighstandards

 P65

10%PTS

increaseinwomeninsenior

leadershiprolessinceFY23

(FY23:36%,FY24:46%)

P68

RESALE

PLATFORM

launchedintheUSA

P62

RESPONSIBLE

PURCHASING

suppliercharterdeveloped

 P65

AAA

TopESGratingof

AAAfromMSCI

CDPClimateScore

ManagementLevelB

AUTHORISED

REPAIR SERVICE

launchedintheUK

P61

RECLAIMED

LEATHER

footwearlaunched

 P59

EXTERNAL

RECOGNITION IN FY24

MORE ONLINE

OUR MATERIALITY

ASSESSMENT

OURIMPACTON

THE SUSTAINABLE

DEVELOPMENT

GOALS (SDGS)

FINDOUT

MOREAT:

DRMARTENSPLC.COM

46 DR. MARTENS PLC ANNUAL REPORT 2024

SUSTAINABILITY

Thisyear,wemadegreatprogresstosupportour

consumerstomaximisethelongevityoftheir

productsthroughrepairandresale.Thedurability

andtimelessdesignofDr.Martensproducts

meanweareperfectlyplacedtotakeonthis

opportunityandexpandintothegrowingsector

ofrecommerce.Wewereexcitedtolaunch

authorisedrepairintheUKandourresale

platformintheUSA,ReWair.

Wealsocontinuedtoinvestininnovationaswe

seektoreducetheimpactofournewproducts

throughsourcinglowerimpactmaterials.In

March2024,welaunchedfootwearmadefrom

reclaimedleather,aninnovativematerialwhich

tacklesleatherwasteinthesupplychain.Ittakes

atestandlearnmentalitytobringprojectssuch

As brand custodians, we are focused on adding long-term value to

our business, without taking short cuts. We are proud to have launched

several initiatives which mark key milestones in Dr. Martens

sustainability journey.

asthesetolifeandwemakesurewelearnfrom

everythingwedo.Theseinitiativessupportour

Net-ZerobyFY40target,whichwasapproved

bytheSBTithisyear–anotherpivotalmoment.

Approvalofourscience-basedtargetssolidifies

ourlong-termambitiontodecarboniseour

businessandsupplychain.Wealsocontinued

workingtowardsourcommitmentstoour

peopleandcommunities,aswedeveloped

ourresponsiblepurchasingpracticescharter.

Inthisreportweoutlinethekeyprogress

wehavemadeoverthepastyeartowards

oursustainabilitystrategyofPlanet,Product,

People.Wehopeyouenjoy.

Aligning Executive pay with our sustainability performance

OurExecutivebonusesarelinkedtotheachievementofspecificsustainabilityinitiativesthatunderpin

ourlong-termsustainabilitycommitments.FindoutmoreinourRemunerationReportonpage119.

TUZE MEKIK

Director of Sustainability

EMILY REICHWALD

Chief Sustainability Officer

1. During FY24.

47DR. MARTENS PLC ANNUAL REPORT 2024

STRATEGIC REPORT

Focus areas Our commitments

Relevant UN SDGs Supported by our strategy

Climate

Energy and climate

• Net-ZerobyFY40(targetvalidatedbySBTi)

• Renewableelectricityacrossallownedandoperatedfacilitiesby2025

Operations

Environmental impacts from supply chain manufacturing processes

• EnvironmentalcertificationstandardtoallTier1suppliersby2025

Waste management

• Minimisewasteandensurezerowastetolandfillacrossthefullvaluechainby2028

Chemicals management and product compliance

• Supportsupplierstoadoptbestpracticechemicalsmanagementby2025

Materials

• 100%offootwearmadefromsustainablematerialsby2040

• Sustainablealternativetooutsolesby2035

• Sustainableveganuppermaterialby2028

• Removefossil-basedchemicalsfromproducts(wherescalablealternativesexist)by2035

Sourcing standards

• 100%ofthenaturalmaterialsinproductsfromregenerativeagricultureby2040

• Zerodeforestationby2025

Leather supply

• 100%leathertraceabilityforallcountriesby2024

• 100%upperleatherfromLWGtanneriesby2023

Packaging

• 100%packagingfromrecycledorothersustainablysourcedmaterialby2028

Lifecycle

Useable life

• Allproductsaligntosustainabledesigncriteriaby2028

• Offeroptionsandguidanceforwearerstomaximiseuseablelifeby2025

End-of-life

• 100%productssoldhavesustainableend-of-lifeoptionby2040

DE&I

The following commitments are to be achieved by 2027:

Ethnicity

• 30%underrepresentedcommunitiesinseniorleadershiproles(GLTanddirectreports)

Gender

• 50%womeninseniorleadershiproles(GLTanddirectreports)

• Increasenon-binarycolleaguesfrom2%to4%globally

Human rights

Wearecommittedtorespectinghumanrights.ThisisreflectedinourDOCtrine(ourbusinesscodeofconduct),

SupplierCodeofConduct,MigrantWorkerPolicyandAnti-SlaveryandHumanTraffickingPolicy.

InFY24,weundertookourfirsthumanrightsriskassessmenttoinformourmanagementapproachinthis

importantarea.

Communities

Weareproudofourrecordofstandingupforsocialjustice.Thisincludessupportinganti-racism,advancing

LGBTQIA+rightsandpromotingpositivementalhealth.

Inparallel,theDr.MartensFoundation(anindependentUKcharity)implementsastructuredprogrammetohelp

organisationspursuesocialjustice.

1. Thedeadlineforallsustainabilitycommitmentsistheendofthecalendaryearstated,exceptfortheNet-ZerobyFY40targetwhichis31March2040.

2. Wehaveremovedthetargettoincreasemalerepresentationacrossourretailstoresto40%becausewebelieveitnolongeralignswithourDE&Istrategy.

WeremainfocusedonprogressingtowardsourotherDE&Itargetsandcommitments.

PlanetProductPeople

EMBEDDING OUR

SUSTAINABILITY STRATEGY

48 DR. MARTENS PLC ANNUAL REPORT 2024

SUSTAINABILITY CONTINUED

Focus areas Our commitments

Relevant UN SDGs Supported by our strategy

Climate

Energy and climate

• Net-ZerobyFY40(targetvalidatedbySBTi)

• Renewableelectricityacrossallownedandoperatedfacilitiesby2025

Operations

Environmental impacts from supply chain manufacturing processes

• EnvironmentalcertificationstandardtoallTier1suppliersby2025

Waste management

• Minimisewasteandensurezerowastetolandfillacrossthefullvaluechainby2028

Chemicals management and product compliance

• Supportsupplierstoadoptbestpracticechemicalsmanagementby2025

Materials

• 100%offootwearmadefromsustainablematerialsby2040

• Sustainablealternativetooutsolesby2035

• Sustainableveganuppermaterialby2028

• Removefossil-basedchemicalsfromproducts(wherescalablealternativesexist)by2035

Sourcing standards

• 100%ofthenaturalmaterialsinproductsfromregenerativeagricultureby2040

• Zerodeforestationby2025

Leather supply

• 100%leathertraceabilityforallcountriesby2024

• 100%upperleatherfromLWGtanneriesby2023

Packaging

• 100%packagingfromrecycledorothersustainablysourcedmaterialby2028

Lifecycle

Useable life

• Allproductsaligntosustainabledesigncriteriaby2028

• Offeroptionsandguidanceforwearerstomaximiseuseablelifeby2025

End-of-life

• 100%productssoldhavesustainableend-of-lifeoptionby2040

DE&I

The following commitments are to be achieved by 2027:

Ethnicity

• 30%underrepresentedcommunitiesinseniorleadershiproles(GLTanddirectreports)

Gender

• 50%womeninseniorleadershiproles(GLTanddirectreports)

• Increasenon-binarycolleaguesfrom2%to4%globally

Human rights

Wearecommittedtorespectinghumanrights.ThisisreflectedinourDOCtrine(ourbusinesscodeofconduct),

SupplierCodeofConduct,MigrantWorkerPolicyandAnti-SlaveryandHumanTraffickingPolicy.

InFY24,weundertookourfirsthumanrightsriskassessmenttoinformourmanagementapproachinthis

importantarea.

Communities

Weareproudofourrecordofstandingupforsocialjustice.Thisincludessupportinganti-racism,advancing

LGBTQIA+rightsandpromotingpositivementalhealth.

Inparallel,theDr.MartensFoundation(anindependentUKcharity)implementsastructuredprogrammetohelp

organisationspursuesocialjustice.

DTC FIRST

This includes building a profitable resale, repair

and end-of-life business model. We are working

towards this aim through the development of our

resale initiatives in the UK and USA, as well as

the launch of our direct-to-consumer authorised

repair service in the UK.

ORGANISATIONAL AND OPERATIONAL

EXCELLENCE

This includes building a best-in-class resilient,

sustainable and scalable supply chain. We

are working to decrease waste and enhance

transparency across our supply chain, while

further advancing our responsible supply chain

management efforts.

CONSUMER CONNECTION

This includes demonstrating sustainability

leadership through the development of durable

and innovative products. This year we launched

footwear using Genix Nappa, a material made

from leather offcuts.

SUPPORT BRAND EXPANSION WITH B2B

While our sustainability strategy does not directly

support the ‘S’ pillar, it is actively demonstrating

to our business partners and consumers that we

are committed to leaving things better than we

found them.

OUR STRATEGY P22

How our sustainability strategy

underpins our DOCS strategy

Our sustainability strategy plays an important role in

supporting the long-term delivery of our DOCS strategy

(page 22). Key areas of alignment between our

sustainability efforts and our DOCS strategy include:

Our sustainability strategy is also integral to our ethos of

Rebellious Self Expression. This is about standing up for

what we believe in and being a business with integrity that

takes our responsibilities seriously towards the planet,

our people and our broader stakeholders.

The above referenced sustainability initiatives are covered

in detail throughout this section.

Oursustainabilitystrategyhasthreepillars:Planet,Product,People,

andsetsoutoursustainabilitycommitments.Wearedeliveringon

thesecommitmentsthroughtheimplementationofourdetailed

roadmaps,whichincludeactions,milestonesandKPIs.Theseare

beingledbydedicatedcross-functionalworkinggroupsandare

underpinnedbyourrobustsustainabilitygovernancestructure.

Inaddition,wehaveestablishedseveralstrategicinitiativesto

furthersupportthedeliveryofourstrategy.Thisincludesour

cross-cuttingclimateinitiatives,ourDE&IStrategy,ourCSR

monitoringandmodernslaveryprogrammesandtheDr.Martens

Foundation.

STRATEGIC REPORT

49DR. MARTENS PLC ANNUAL REPORT 2024

PLANET

FOCUS AREAS AND

COMMITMENTS

Climate

• Net-ZerobyFY40

• Renewableelectricityacrossallowned

andoperatedfacilitiesby2025

Operations

• Minimisewasteandensurezero

wastetolandfillacrossthefullvalue

chainby2028

• Environmentalcertificationstandard

toallTier1suppliersby2025

• Supportsupplierstoadoptbestpractice

chemicalmanagementby2025

FOR ADDITIONAL COMMITMENTS,

SEEP51AND54

PROGRESS HIGHLIGHTS

RELATED UN SDGS

VERIFICATION OF

OUR SCIENCE-BASED

TARGETS

OurFY40Net-Zeroscience-based

targetshavebeenverifiedbytheSBTi

EMISSIONS

MANAGEMENT TOOL

usedtocalculateourfootprintfor

thefirsttime

93.5%

ofelectricityconsumptionforour

ownedandoperatedUKandEMEA

sitescamefromrenewablesources

TOFINDOUTMORE,SEE OUR

SDG MAPPING EXERCISE AT:

DRMARTENSPLC.COM

We are working to minimise our impact

on the planet. This includes a strategic

plan to achieve Net-Zero greenhouse

gas (GHG) emissions across our value

chain by FY40. We are also continuing

to responsibly manage our broader

environmental impacts through the

pursuit of operational excellence,

within both our own operations and

our broader supply chain.

SUSTAINABILITY CONTINUED

50 DR. MARTENS PLC ANNUAL REPORT 2024

Urgentactionisneededtoaddress

climatechangeandlimitthe

increasingimpactscausedby

globalwarming.Thisyear,the

validationofourscience-based

targets(SBTs)hassolidifiedour

ambitiontodecarboniseour

businessandcollectivelylimitthe

impactsoftheclimatecrisis.

OUR COMMITMENTS:

Energy and climate

• Net-ZerobyFY40(target

validatedbySBTi)

• Renewableelectricityacross

allownedandoperatedfacilities

by2025

CLIMATE

OUR PATH TO NET-ZERO

Validation of our science-based

targets

InOctober2023,theScienceBasedTargets

initiative(SBTi)validatedournearand

long-termemissionstargets

.OurSBTsare

informedbyclimatescienceandwillhelp

guideusinourjourneytoreachNet-Zero

acrossourownoperationsandvaluechain.

Theyfocusonreducingourabsolutetotal

emissionsratherthanouremissions

intensity.Asleatherrepresentsasignificant

proportionofourtotalcarbonfootprint,we

havesetleather-specificemissionsreduction

targets,inlinewiththeSBTiForest,Landand

Agriculture(FLAG)guidance.Ourtargetsare

alignedwithlimitingglobalwarmingto1.5˚C

(Scope3near-termtargetsarealignedto

wellbelow2˚C):

Dr. Martens commits to reach Net-Zero

greenhouse gas (GHG) emissions

across the value chain by FY40.

Near-term targets:

• Scope1and2:Reduceabsolutescope1

and2GHGemissions90%byFY30

fromaFY20baseyear.

• Scope3:Reduceabsolutescope3GHG

emissions30%byFY30fromaFY20

baseyear.

• FLAG(Forests,LandandAgriculture):

reduceabsoluteScope3FLAGGHG

emissions30.3%byFY30fromaFY20

baseyear.

WHY IT MATTERS...

WHAT WE’RE DOING...

1.TheseuseaFY20baselineasFY21wassubjecttosignificantCovid-19relateddisruption.

2. Wereportoneyearinarrearsduetothetimerequiredtoprocessthelargeamountofscope3emissionsdata.

3. Market-basedscope2emissions.

4. Keymethodologychangesincluded:refrigerantgasemissionscalculations,energyusageatsiteswheredata

wasnotavailable,emissionsassociatedwithwasteproductionatstoresandofficeswheredatawasnot

available,andaccountingforcomponentryemissions(includingnon-leatheruppermaterials,componentssuch

asheelloopsandinsoles,andconstructionmaterialsusedinoutsolesanduppers).

Our near and long-term science-based targets

EMISSIONS IN

SCOPE

SCOPE 1

AND 2

SCOPE 3

All

Non-FLAG(allother

Scope3emissions

inscope)

FLAG(Forests,

LandandAgriculture

emissionsassociated

withcattlerearing)

FY30

90%

(Net-Zero)

90%

(Net-Zero)

72%

(Net-Zero)

30%

30.3%

FY40

Maintain at

least 90%

reduction

Long-term targets:

• Scope1and2:Maintainatleast90%

absolutescope1and2GHGemissions

reductionsfromFY30throughFY40from

aFY20baseyear.

• Scope3:Reduceabsolutescope3GHG

emissions90%byFY40fromaFY20

baseyear.

• FLAG:reduceabsolutescope3FLAG

GHGemissions72%withinthesame

timeframe.

Ourachievementofthesetargetsrequires

actionacrossseveralareasofourbusiness,

assetoutonthenextpage.

Our carbon footprint

Forourthirdannualcarbonfootprint

calculation,wecontinuedtomeasureour

emissionsacrossouroperationsandfull

valuechain.Forthefirsttime,thisexercise

wasconductedusingathird-partyemissions

managementtool.Itwascarriedoutinline

withtheGreenhouseGas(GHG)protocol

andcoveredtheFY23period

(1April2022

to31March2023).FY23capturesthemost

recentandaccuratedatawehaveavailable

forourScope3emissions.OurFY24Scope

1and2emissionscanbefoundinour

StreamlinedEnergyandCarbonReporting

(SECR)disclosure(page53).

Understanding our footprint

Dr.MartensScope1,2and3emissions

totalled280,456tonnesofCO

einFY23

(FY22:275,463CO

e).Duringthisperiod,

ourbusinesscontinuedtogrow,reaching

£1bninrevenue.ForourFY23footprint,we

usedathird-partyemissionsmanagement

tooltocalculateourfootprintforthefirsttime.

Thischangeinapproachmeantthatsome

categorieswerecalculatedusingdifferent

methodologiesthanthoseusedinFY20and

FY22

.Thetransitiontousingthesoftware

tomonitorouremissionsrepresentsastep

forwardinourreportingjourneyandmeans

ourfootprintwillbemeasuredmore

consistentlyandefficientlygoingforward.

Thesoftwareproviderperiodicallyupdates

themethodologytocapturethelatest

climatescienceandemissionsaccounting

bestpractices,bothofwhichare

continuouslyevolving.Theseupdateskeep

measurementsasaccurateaspossible.

Thegranularityandqualityofinputdata

usedtocalculateourFY23footprintwere

alsosignificantlyimprovedacrossseveral

categories.Whereavailable,weused

lifecycleassessments(LCAs)specificto

thematerialssourced.Forexample,we

usedLCAscovering49%oftheleatherwe

STRATEGIC REPORT

51DR. MARTENS PLC ANNUAL REPORT 2024

30%

14%

12%

17%

Leather

Outsoles

Accessories, packaging

and other materials

Manufacturing

Non-product purchased

goods and services

Transportation and distribution

Other

30%

14%

12%

17%

Leather

Outsoles

Accessories, packaging

and other materials

Manufacturing

Non-product purchased

goods and services

Transportation and distribution

Other

sourced,ratherthanusinglessspecific

emissionsfactors.Theseimprovements

meanourFY23footprintismoreaccurate

andcomprehensivethaninpreviousyears,

howeveritisnotdirectlycomparable

againsttheFY20andFY22footprintsdue

tothesechanges.Abreakdownofour

FY23scope3emissionscategoriescan

befoundonpage83inourTCFDReport.

SUSTAINABILITY CONTINUED

Examples of how we plan to achieve our science-based targets

FY23 Scope 3

emissions

(%ofScope3

emissions)

1. Valuesareroundedandtotalsarecalculatedbeforerounding.WeworkedwithdifferentexternalpartnersandthereforeuseddifferentmethodologiesforourFY20andFY22

vsFY23GHGemissionsprofiles.AdditionalinformationontheapproachusedinFY20andFY22canbefoundinourpreviousAnnualReports.FY23Scope1and2

emissionshavebeenrecalculatedusingtheemissionsmanagementtoolthisyeartoensurethemeasurementisconsistentandcomparableagainsttheFY24emissions.

ThisledtoachangeinemissionsfrompreviouslyreportedFY23figuresduetoanincreaseindataavailabilityandmethodologychangesasaresultofusingtheemissions

managementtool.

2.Allmaterialemissionscategoriesareincluded.ThefollowingGHGProtocolScope3emissionsareexcludedfromFY23becausetheyarecoveredinanothercategoryor

becausetheyarenotrelevantforourbusiness:(8)Upstreamleasedassets,(10)Processingofsoldproductsand(13)Downstreamleasedassets.

FY20 and FY23 footprint for Scope 1, 2 and 3 emissions

Scope

Baseline FY20

emissions

(Tonnes CO

FY23 emissions

(Tonnes CO

FY23 percentage

of total value chain

emissions (%)Footprint calculation method

Third-party

consultant

Emissions

management

software

Scope 1 640 1,151 0.4%

Scope 2 (Location) 1,891 2,502 –

Scope 2 (Market) 1,936 1,903 0.7%

Scope 3

240,355 2 7 7,402 98.9%

FOCUS

Energy efficiency

ImprovingenergyefficiencyiskeytoreachingourNet-Zerotarget.Thisyearweupgraded

ourheating,ventilationandairconditioningsysteminourMadeInEnglandfactorytorun

offarenewableelectricitysupplyinsteadofgas,helpingustomoveawayfromfossilfuels.

WehavealsocontinuedtotransitionthelightingatourUKfactoryanddistributioncentreto

LED.WeareaimingtocompletethefinalphaseoftransitioningourownedUKoperations

toLEDlightingnextyear.

Scope 1 & 2 (direct emissions and purchased energy) (~1% of total footprint)

Scope 3 (supply chain emissions) (~99% of total footprint)

IN PROGRESS

• Renewable electricity procurement across

owned and operated sites

• Energy efficiency measures including switching

to LEDs, HVAC optimisation and installing

smart meters

• Transition company cars to electric vehicles

FUTURE PLANS

• Energy efficiency awareness training

and engagement for employees

IN PROGRESS

• Transition to low carbon materials

(e.g. bio-based alternatives)

• Reduce leather related emissions by sourcing

leather that is traceable, deforestation-free and

from regenerative sources

• Increased material efficiency and circularity

• Scaling up repair and resale business models

FUTURE PLANS

• Supply chain transport electrification and

promoting low carbon movements via sea,

rail and road

• Supporting supply chain to reduce energy

use and transition to renewables

DM’S EMISSIONS

3. Otheremissionsincludecapitalgoods,

fuelandenergyrelatedactivities,waste

generatedinoperations,businesstravel,

employeecommuting,useofsoldproducts,

end-of-lifeofsoldproducts,franchises,

andinvestments.

52 DR. MARTENS PLC ANNUAL REPORT 2024

• The reporting period for SECR is 1 April 2023 to 31 March 2024 and covers

Dr. Martens plc and other Group companies. An operational control approach is

applied to defining organisational boundaries. Data is reported for sites where it is

considered that Dr. Martens has the ability to influence energy management. Data

is not reported for sites where Dr. Martens has a physical presence but does not

influence the energy management for those sites, such as a concession within a

department store.

• Scope 1 and 2 emissions include gas, fuel used in transport, fugitive emissions,

other fuels and purchased electricity. Scope 1 physical or chemical processing

emissions are not applicable and Scope 2 steam, district heating and district

cooling emissions are not applicable. Our complete Scope 1-3 emissions are

calculated one year in arrears due to the complexity of the data collection process;

our FY23 footprint including full Scope 3 emissions can be found on page 83.

• This year, for the first time, emissions within the SECR disclosure have been

calculated using a third-party emissions management tool.

• Emissions are calculated following the GHG Reporting Protocol (Corporate

Standard), taking into account the 2015 amendment which sets out a ‘dual

reporting’ methodology for Scope 2 emissions.

• Separate UK dual reporting has been conducted, in addition to mandatory global

reporting, which encompasses all global data.

• Data is sourced from a combination of half hourly readings and energy invoices.

Where data was unavailable, energy consumption is estimated for the respective

meter and period.

• Energy usage estimation methods include calculating the average daily

consumption and applying to the period in question or estimating based on building

type and square-footage. This is combined with emissions factors from the USA

Environmental Protection Agency (EPA), Ecoinvent, TCR and other data sources

to calculate GHG emissions. Electricity emissions factors are chosen based on

geography to reflect the emissions intensities of the facilities’ local grid. Fugitive

emissions from refrigerant leakage is estimated for all facilities. Known refrigerant

gas releases are accounted for.

• In some instances, data could not be converted to energy consumption. In FY23

this includes 61.1 kg of fugitive gas in the UK and 153.7 kg globally, as well as

Scope 3 grey fleet emissions (68,386 km and 2,615 USD in the UK and 56,956

USD globally). In FY24 this includes 114.9 kg of fugitive gas in the UK and 214.6 kg

and 4,967 USD globally, as well as Scope 3 grey fleet emissions (66,544 km in the

UK and 165,899 km and 15,351 USD globally).

• FY23 Scope 1, 2 and grey fleet Scope 3 emissions have been recalculated using

the emissions management tool this year to ensure the FY23 footprint is

consistent across the value chain and comparable against the FY24 SECR

disclosure. This led to a change in emissions from previously reported FY23

figures due to an increase in data availability and methodology changes as a result

of using the emissions management tool.

• Dr. Martens appointed a third party to provide independent limited assurance of the

FY24 SECR Disclosure, including the recalculated FY23 emissions, in accordance

with International Standard on Assurance Engagements (ISAE) 3410.

Streamlined Energy and Carbon Reporting Statement

EmissionsdatainrespectoftheFY24reportingperiodisasfollows:

FY23 emissions (tCO

e) FY24 emissions (tCO

GHG Protocol Scope Sub-category UK Global UK Global

Scope 1 Combustion of fuel and operation of facilities 303 563 355 596

Scope 1 Combustion of fuel from owned or leased vehicles 36 588 83 359

Total Scope 1 339 1,151 438 955

Scope 2 (Location-based) Purchased energy 506 2,502 623 2,889

Scope 2 (Market-based) Purchased energy 173 1,903 248 2,168

Scope 1 and 2 (Location-based) 845 3,653 1,061 3,844

Scope 3 (grey fleet only) Grey fleet 16 55 14 50

Total emissions (Location-based) 862 3,708 1,075 3,894

Total energy use (kWh) 3,88,125 11,746,360 4,498,868 11,978,415

Turnover (£) – 1,000,299,000 – 87 7,05 3,126

Intensity ratio (tCO

e/£100,000) – 0.37 – 0.44

CLIMATE RISKS AND

OPPORTUNITIES

Wearecontinuingtoadvanceour

understandingofourclimaterisksand

opportunities,aswellastheirfinancial

implications.Forfurtherdetailsonour

CROs,includingrelatedmitigationactions,

seeourfullTaskForceonClimate-related

FinancialDisclosures(TCFD)disclosure

(page75).Thisincludesdeepdivecase

studiesonrepairandresale,riverine

floodingandcarbontaxation.

Next,weplantocontinueintegrating

climateriskandopportunitiesintoour

businessmanagementprocesses.

Wewillalsocontinuetousethe

newemissionsmanagementtool

tomodelouremissionsscenarios

toassessprogressagainstour

Net-Zeromilestones.

FOCUS

WHAT’S NEXT?

Increasing renewable energy

use at our sites

Region

FY23

(% of total kWh

consumption)

FY24

(% of total kWh

consumption)

EMEA 92.0% 93.5%

Global 44.0% 46.3%

Transitioning to energy from renewable

sources is a key mechanism in our efforts to

decarbonise Dr. Martens direct activities. As

part of our approach, we are moving away

from using fossil fuels by upgrading gas

powered HVAC systems to electric, enabling

them to be powered through renewable

electricity. By doing this, in FY24 our Scope 1

emissions decreased by 17% from FY23

(FY23: 1,151 tCO

e, FY24: 955 tCO

e). We

are working to source 100% of electricity

from renewable sources across our owned

and operated sites by the end of 2025.

During FY24, 93.5% of the electricity

consumption for our owned and operated

sites in EMEA (including UK) came from

renewable sources

. While the total

consumption of renewable electricity

increased, the overall proportion remained

flat. Multiple new stores opened during FY24,

some of which are still due to be moved onto

a renewable contract. In FY25, we will focus

on transitioning the remaining UK and EMEA

sites and the electricity supplies of our owned

and operated sites in the USA and APAC.

COMMITMENTS SUPPORTED:

• Net-ZerobyFY40

• Renewableelectricityacrossallownedand

operatedfacilitiesby2025

4. Fromthisyearonwardstherenewableelectricitytargetwillbereportedasa%oftotalkWhelectricity

consumption,tobetteralignwiththerequirementsofCDP,whichwealsodiscloseagainstonanannualbasis.

Previouslythiswasreportedasa%ofthetotalnumberofsitesperregion.TheFY23figuredisclosedinour

previousAnnualReport(EMEAandUK:91%)hasbeenamendedtoalignwithourupdatedapproach(92%).

5. SiteswhereDr.Martensdoesnothaveoperationalcontrolofelectricityprocurementhavebeenexcluded.

STRATEGIC REPORT

53DR. MARTENS PLC ANNUAL REPORT 2024

SUSTAINABILITY CONTINUED

OPERATIONS

Operationalexcellenceisacorepillar

ofourDOCSstrategy.Pursuing

operationalexcellenceisnotonly

goodforourbusiness,butalsofor

theenvironment.Thisincludesthe

responsiblemanagementofwasteand

chemicals,aswellastheapplicationof

sustainableenvironmentalstandards.

Weworkwithoursupplierstopromote

moreresponsibleenvironmental

standardsthroughoutthevaluechain.

OUR COMMITMENTS:

Environmental impacts from

supply chain manufacturing

processes

• Environmentalcertification

standardtoallTier1suppliers

by2025

Waste management

• Minimisewasteandensurezero

wastetolandfillacrossthefull

valuechainby2028

Chemicals management and

product compliance

• Supportsupplierstoadoptbest

practicechemicalsmanagement

by2025

 SEEP64FORMORE

INFORMATIONONHOW WE

RESPONSIBLY MANAGE OUR

SUPPLY CHAIN

OUR OWN OPERATIONS

Whilemostofourenvironmentalimpact

isofanindirectnatureandtakesplace

throughoursupplychain,wewanttolead

byexampleinourownoperations.This

iswhywecontinuedtopursuearange

ofsustainabilityinitiativesatourMadeIn

Englandfactory,whichiscertifiedtothe

ISO14001environmentalmanagement

systemstandard

.Theseare:

• Theuseofautomaticcuttingmachines,

resultinginhigherlevelsofcutting

efficiencyandreducedleatherwaste.

• Therecyclingofpost-industrialPVCwaste

throughouroutsolemanufacturingprocess.

• Manufactureofour‘deadstock’product

line,whichhasbeenintegratedintoall

plannedMadeInEnglandfutureseasons.

• Thefittingofnewelectricheating,

ventilationandairconditioning(HVAC),

aswellastheongoingreplacementof

existinglightfittingswithLEDbulbs.

Wearealsoworkingtoimplementmore

sustainablepracticesacrossourstores,

throughthedevelopmentofourSustainable

StoreDevelopmentGuidelines,which

areinformedbytheBuildingResearch

EstablishmentEnvironmentalAssessment

Methodology(BREEAM)standards.The

draftguidelinesweresubsequentlytested

atourCambridgestore,withfurthertesting

totakeplaceatourstoreinHamburg,

beforebeingrolledoutmorewidely.

1461 Made In England Deadstock

Leather Oxford Shoes

1. WiththelatestassessmenttakingplaceinDecember2023.

WHY IT MATTERS...

WHAT WE’RE DOING...

54 DR. MARTENS PLC ANNUAL REPORT 2024

OUR SUPPLY CHAIN

Waste

Ourcommitmenttoachievezerowasteto

landfillacrossourfullvaluechainby2028will

requiresystematic,positivechangeacross

oursupplychain.InFY24,wecontinuedto

collectsupplychainenvironmentaldatato

helpusactivelymonitorourindirectwaste

impacts.Withinourownoperations,ourUK

distributioncentrewaszerowastetolandfill

throughout2023.LeatherandPVCaretwo

ofourmainmaterialsandrepresenttwoof

ourkeywastestreams.

InFY24,welaunchedourfirstproducts

madefromreclaimedleather,GenixNappa,

whichismadefrompre-consumerleather

waste(page59).Inaddition,our‘deadstock’

productline,whichincorporatesleatherleft

overfrompreviousseasons,sawitsfirstfull

yearofoperation,achievingstrongsales.

OuroutsolesupplierstakewastePVC

producedduringthemanufacturingofour

outsolesandreinjectitintotheprocess.

ThesametechniqueisappliedatourMade

InEnglandfactory,whichalsosendsany

non-reusablePVCwaste(e.g.mixedcolour

waste)toapartnerthatrecyclesitintonew

footwear.Wearealsoworkingwithour

productrecyclingpartnerintheEMEAregion

toinvestigateopportunitiesfortherecycling

ofpost-consumerPVCoutsolesintonew

outsoles.Moreonoureffortstoreducewaste

throughproductcircularityandrecyclingcan

befoundintheLifecyclesectiononpage61.

Next,ourareasoffocusareto

progresswithselectionofan

environmentalmeasurementtoolfor

ourTier1suppliersandinvestigate

productrecyclingpartnersinAPAC.

Developing our supplier environmental certification standard

Environmentalcertificationisa

mechanismwhichwillhelpusmonitor

andsystematicallyimproveoursuppliers’

environmentalperformance.Inorderto

achievethis,andfollowinganinternalreview

ofneeds,weareseekingtoimplementa

tooltomonitorandmanageenvironmental

impactsacrossourTier1suppliers.

Itwillsupportuswiththecollectionand

verificationofdata,aswellassupport

theimplementationofcontinuous

improvementplanstoenableprogress

towardsourenvironmentalcommitments.

Wearecurrentlyreviewingpotential

solutions.

COMMITMENTS SUPPORTED:

• EnvironmentalcertificationstandardtoallTier1suppliersby2025

Chemicals

Ourchemicalmanagementsystemand

RestrictedSubstanceList(RSL)ensure

weareinfullcompliancewithallrelevant

chemical-relatedregulations.Thesecover

ourownoperationsandourTier1suppliers,

whocascaderelevantrequirementstotheir

sub-suppliers.DuringFY24,wecontinued

withourongoingRSLtestingprogramme

forcomponentsandfinishedproducts,

aswellasrelevantcertificationreviews.

WealsorequireTier1andKeyTier2

supplierstosignourGeneralMaterial

RequirementPolicy(GMRP)toensure

theinputstheysupplycomplywithrelevant

productsafetylegislation,amongother

requirements.Wereviewthispolicy,which

isalignedwiththeregulatoryrequirements

ofourkeyregions,onanannualbasis.

Water

Akeyimpactareaforwatermanagement

acrossourvaluechaintakesplaceatthe

tannery-level(includingwateruseand

wastewateremissions).WerequireTier1

supplierstoonlyuseleatherfromLeather

WorkingGroup(LWG)-certifiedtanneriesinour

products.Thismeansthetannerieswesource

leatherfromarecompliantwiththeLWGaudit

protocol,whichrequirestanneriestomanage

theirwaterconsumptionresponsiblyandis

alignedwiththeZeroDischargeofHazardous

Chemicals(ZDHC)

requirements.

Wecollectwaterusedata(amongother

environmentalindicators)fromourTier1

supplierfactoriesonaquarterlybasis,

ensuringwemaintainahighlevelofinsight

intotheirperformance.

SEEP64FORMOREINFORMATIONON

HOW WE RESPONSIBLY MANAGE OUR

SUPPLY CHAIN

Genix Nappa

2. ZDHCisdedicatedtoreducingtheapparelandfootwearindustry’schemicalfootprintthroughtheimplementationoftheZDHCMRSL,alistofrestrictedsubstances.

WHAT’S NEXT?

FOCUS

STRATEGIC REPORT

55DR. MARTENS PLC ANNUAL REPORT 2024

PRODUCT

FOCUS AREAS AND

COMMITMENTS

Materials

• 100%offootwearmadefrom

sustainablematerialsby2040

• 100%ofthenaturalmaterials

inproductsfromregenerative

agricultureby2040

• Removefossil-basedchemicals

fromproductsby2035

Packaging

• 100%ofpackagingtocome

fromrecycledorothersustainably

sourcedmaterialby2028

Lifecycle

• 100%ofproductssoldhavea

sustainableend-of-lifeoptionby2040

FOR ADDITIONAL COMMITMENTS,

SEEP57,60AND61

PROGRESS HIGHLIGHTS

RELATED UN SDGS

LWG LEATHER

Sourced100%LeatherWorkingGroup

leatherforAW24

RECYCLED PACKAGING

SwitchedtoForestStewardshipCouncil

(FSC)recycledcardboardforourcore

shoeboxes

RECLAIMED LEATHER

Launchedfootwearmadefromreclaimed

leatheroffcuts

RESALE

LaunchedourresaleinitiativeintheUSA

REPAIR

Launchedourdirect-to-consumer

authorisedrepairserviceintheUK

 TOFINDOUTMORE,SEEOUR

SDG MAPPING EXERCISE AT:

DRMARTENSPLC.COM

We have made iconic, timeless and

durable footwear for more than six

decades. But we are determined to keep

moving forward. This is why we are

developing new materials, while working to

reduce the environmental impacts of our

existing materials. We are also developing

profitable repair, resale and end-of-life

solutions for our products. These efforts

are helping us move towards our long-term

vision of a regenerative, circular product

lifecycle which also supports our efforts to

reach Net-Zero.

SUSTAINABILITY CONTINUED

56 DR. MARTENS PLC ANNUAL REPORT 2024

61%

58%

64%

70%

73%

80%

87%

84%

89%

Traceability to the abattoir

Season

SS19

AW19

SS20

AW20

SS21

AW21

SS22

AW22

SS23

AW23

100%

Thematerialsweusenotonlyunderpin

thedurability,lookandfeelofour

footwear,butalsoinfluenceourproduct

lifecycleimpacts.Thisiswhywefocus

onsourcingmoresustainable

materialsthatare:

• Durableanddeliveronthequality

neededforouriconicfootwear

• Recycled,renewableand/or

regenerative

• Producedresponsiblybymeeting

ourenvironmentalandsocial

standards

Weareactivelysourcingleather

thatmeetsourtraceabilityand

environmentalstandardsandare

developingregenerativeleathersupply

options.Wearealsoexploringmore

sustainableoptionsforouroutsoles

andothercomponentry,withoutever

compromisingondurability.

OUR COMMITMENTS:

Innovation in design and

sustainable materials

• 100%offootwearmadefrom

sustainablematerialsby2040

• Sustainablealternativetooutsoles

by2035

• Sustainableveganuppermaterial

by2028

Land, biodiversity and

ecosystems impacts of

raw material production

• 100%ofthenaturalmaterials

inproductsfromregenerative

agricultureby2040

• Removefossil-basedchemicals

fromproductsby2035

• Zerodeforestationby2025

• 100%leathertraceabilityfor

allcountriesby2024

• 100%upperleatherfrom

LWGby2023

MATERIALS

SEEP64FORMORE

INFORMATIONON H O W

WE RESPONSIBLY MANAGE

OUR SUPPLY CHAIN

Weareworkingtoreducetheenvironmental

impactsofourexistingmaterialsaswellas

researchinganddevelopinginnovative,

lower-impactalternatives.Weareguided

intheseeffortsbyourDRPSustainable

MaterialsCriteria

.InFY24,wealsobegan

therolloutofournewProductLifecycle

Management(PLM)systemtohelpdeliver

enhancedvisibilityacrossourproductlifecycle.

Bringingmoresustainablematerialstomarket

representsourmostsignificantopportunity

tooptimiseourcarbonreductioneffortsand

achieveourNet-ZerobyFY40target.

LEATHER

Werecognisetheneedtocontinueadapting

thewaysinwhichwesourceanduse

leather,asweworktowardsoursustainable

materialcommitments.Weareparticularly

focusedonenhancingleathertraceability,

sowecanensureourleathercomesfrom

deforestation-freeandregenerative

sources.Thisincludesafocusonreducing

ourleather-relatedcarbonemissionsand

onidentifyinglowercarbonalternativesin

linewithourNet-Zeroambitions.Keyto

theseeffortsisouractiveparticipationin

theLeatherWorkingGroup(LWG).

Enhancing leather traceability

Beingabletotracewhereourleathercomes

fromisanessentialfirststepforensuringit

isnotassociatedwithdeforestationorother

negativeenvironmental,socialandanimal

welfareimpacts.

Theleathersupplychainiscomplexandthe

hidesusedfortheleatherwesourcecome

fromthefoodindustry.Wecontinuetowork

towardsourcommitmenttoachieve100%

traceabilitybacktotheabattoirforallour

leatherbytheendof2024.

InAW23,89%ofourupperleatherwas

traceablebacktotheabattoir(AW22:87%).

Toreachourtarget,wewillbeengagingan

expertthirdpartytoundertakeadetailed

mappingofallabattoirsinourleathersupply

chain.Weareconfidentthisexercisewill

significantlyclosetheremaininggapin

ourtarget.

Traceability to the abattoir for

leather purchases (%)

1.OurDRPSustainableMaterialsCriteriaevaluatesifmaterialsare1.Durable,2.Recycled,renewableand/or

regenerativeand3.Producedresponsibly.Thefulldefinitioncanbefoundonourplcwebsite.

Wewillalsocontinuetoengagewithour

tannerypartnerstosupporttheongoing

improvementoftheirownreporting

processes.Ourlongertermaimistoachieve

traceabilitybacktothefarm.Thisisamore

complextaskandwecontinuetoexplore

scalablesolutionstothischallenge.

89%

ofourleatheristraceableback

totheabattoir(AW23)

KPI

In progress

COMMITMENTS SUPPORTED:

• 100%leathertraceabilityforall

countriesby2024

WHY IT MATTERS... WHAT WE’RE DOING...

STRATEGIC REPORT

57DR. MARTENS PLC ANNUAL REPORT 2024

98%

99%

100%

98%

99%

100%

Upper leather sourced

Season

SS20

AW20

SS21

AW21

SS22

AW22

SS23

AW23

SS24

AW24

100%

SUSTAINABILITY CONTINUED

Supporting regenerative

agriculture

Regenerativeagricultureisaholisticsetof

farmingpracticesthatseektohavealower,

orevenpositive,environmentalimpact.

Theycanbeusedtoimprovesoilhealth,

ecosystemsandbiodiversitywhichcan

allalleviateclimatechange.

Wehavecommittedto100%ofthenatural

materialsinourproductscomingfrom

regenerativeagricultureby2040.Aspart

oftheseefforts,inFY24,wecontinuedto

exploreleathersupplieswhichsupportthe

principlesofregenerativefarming.Weare

currentlyinvestigatingaleathersupplywith

traceabilitybacktofarmsthataremanaged

using‘preferredagriculturalpractices’.

The‘preferredagriculturalpractices’applied

bythefarmsarealignedwithselect

regenerativeagriculturalpracticessuchas

rotationalgrazingandenhancedanimal

welfare.Thismarksasmallsteptowards

ourambitionsoffarm-leveltraceabilityand

supportingmoresustainableagricultural

practicesinoursupplychain.Weare

currentlyselectinganexternalspecialist

toverifythesecertifications,aswellas

thechainofcustody.Wewillreviewkey

lessonslearnedtoinformnextsteps.

Reducing the impacts of leather

processing

WesourceallourleatherfromLWGcertified

tanneries.TannerieswithLWGcertification

haveresponsibleenvironmentalmanagement

practicesinplaceandcomplywithLWG

environmentalstandardsforenergyuse,

water,chemicalsandwastemanagement

FortheAW24season,100%ofourupper

leathercamefromLWGcertifiedtanneries

(78%Gold,21%Silver,1%Audited).

FollowingtheexpirationofLWGcertification

foroneofourtanneriesinAW23,sourcing

wasrelocatedtoacertifiedfacility.Weare

continuingtoworkwiththisparticular

tannerypartnertoensurethissituationis

resolvedforthelongterm.Allotherleather

weuse(i.e.liningleather,leathergoods,

leatherlacesandfootbeds)alsocontinues

tocomefromLWGcertifiedtanneries.We

areproudtosourceexclusivelyfromLWG

certifiedtannerieswhichhelpsensurewe

minimisenegativeimpactsassociatedwith

theleatherprocessingcarriedoutinour

supplychain.

Exploring leather alternatives

Leatherwillcontinuetobeanimportantupper

materialforusinthefuture.Nonetheless,we

arealsofocusedondevelopinglowercarbon

alternativestosupporttheachievementofour

long-termNet-Zeroandsustainablematerial

commitments.

Addressing deforestation in the leather supply chain and beyond

InNovember2023,wecommenced

therolloutofaZeroDeforestation

ImplementationPlantosupportthe

enhancedassessmentandmitigationof

deforestationrisksinourleathersupply

chain.Thiswasdevelopedwithsupport

fromexternalspecialists,including

theLWGandtheWorldWideFund

forNature(WWF),anddeveloped

alongsideotherLWGmemberbrands.

ThePlanincludesconcretemeasures

andguidanceinrelationtodeforestation

policydevelopment,traceability

standards,datacollectionand

assurance,supplierengagementand

capacitybuilding,andmonitoringand

reporting,amongotherareas.In

addition,thethird-partymappingofour

leathersupplychainwillprovidemore

granulardeforestationriskmapping

basedonabattoirlocation.

COMMITMENTS SUPPORTED:

• 100%leathertraceabilityforallcountriesby2024

• Zerodeforestationby2025

• Net-ZerobyFY40

1. FormoreinformationontheLWGgotowww.leatherworkinggroup.com.

Upper leather sourced from

LWG certified tanneries (%)

March2024sawthelaunchofourfirst

productsmadefromreclaimedleather,

whichusesre-engineeredleatherwaste.In

FY24,wealsoadvancedworkonbio-based

veganmaterials.DuringFY24,veganupper

materialsinreviewincludedwearertrials

andfurtherenhancementstoabio-based

uppermaterialoriginatingfrommycelium

andinvestigationofabio-basedplastic

materialthatusesplant-basedingredients

originatingfromcorn.

FOCUS

100%

ofourupperleatherforAW24

isfromLWGcertifiedtanneries.

Inaddition,allotherleatherweuse,

includinglinings,leathergoods,

lacesandfootbeds,nowcomes

fromLWGcertifiedtanneries.

KPI

Achieved

COMMITMENTS SUPPORTED:

• 100%upperleatherfromLWG

tanneriesby2023

58 DR. MARTENS PLC ANNUAL REPORT 2024

Trialling Genix Nappa to develop lower impact footwear

InMarch2024,welaunchedourfirst

productsmadefromreclaimed

leather.GenixNappaisaninnovative

anddurableuppermaterialmade

fromre-engineeredleatheroffcuts.

Thetrialisbasedonalimitedvolume

ofbootsandshoesavailableacross

ourAmericas,EMEAandAPAC

regions.Priortothelaunch,we

carriedoutextensivepre-production

testingandtrialstoensurethe

materialmetourhighstandards

includingourDRPCriteria.

HalfofthetotalcontentofGenix

Nappaisreclaimedleather.The

remainingcontentismadefroma

virginnyloncorewhichsupports

thematerial’sdurabilityanda

water-basedpolyurethanecoating

toimproveperformanceandprovide

thefinish.Thereclaimedleatheris

frompre-consumerleatherwaste

(leatheroffcuts)fromthetanning

processthatwouldotherwisebesent

tolandfill.Thematerialismadeusing

aprocesswhichseparatestheleather

fibresbeforere-entanglingthemwith

thenyloncoretoproducearollof

materialmadefromreclaimedleather.

TheuseofGenixNappanotonly

helpstolimitleatherwaste,but

alsoreducessomeofthecarbon

emissionsassociatedwiththe

productionofnewleatherproducts.

TheLifecycleAssessment(LCA)

forasimilarmaterialfromthesame

supplierindicatescarbonemissions

ofaroundathirdofthoseassociated

withconventionalbovineleather.

Wearecurrentlyworkingwiththe

suppliertodevelopaspecificLCA

forGenixNappa.

Next,wewillgatherconsumer

feedbackandcontinuetowork

withthesuppliertofurtherenhance

thesustainabilityofthematerial.

Thisincludesafocusonenhancing

circularitybyexploringtheuseof

finishedleatherwastefromour

Tier1supplierstocreatematerials

madefromreclaimedleather,

similartoGenixNappa.

COMMITMENTS SUPPORTED:

• Minimisewasteandensurezerowasteto

landfillacrossthefullvaluechainby2028

• 100%offootwearmadefromsustainable

materialsby2040

• Net-ZerobyFY40

PVC

Themajorityofouroutsolesaremadeusing

PVC,ahard-wearingandlong-lasting

material.Theproductionprocessforour

PVCoutsolescreatesminimalvolumesof

post-industrialwaste.Itsrecyclablenature

meansthatpost-productionindustrialPVC

wastecanbeblendedbackintothe

productionprocessforouroutsoles(see

page55formoreonoutsolerecycling).

Exploring bio-based alternatives

Werecognisetheneedtodeveloplower-

carbon,bio-basedalternativestoPVC

becauseitscreationrequirestheuseof

fossilfuelsandchemicals.Thisiswhy

wehavecommittedtodevelopinga

sustainablealternativeoutsoleby2035.

InFY24,weundertookfurthertestingof

abio-basedoutsolealternativetoensure

thatitmeetsouraestheticandperformance

standards,includingourDRPCriteria.

Followingpositiveresults,wenowplanto

trialthematerialinproducts.

Watch the video

on how reclaimed

leather is made

FOCUS

100%

recycledpolyester

contentinall

standardheelloops

100%

recycledcontentin

luxefauxfur

20%

recycledpolyester

contentinlaces

80%

recycledpolyester

inmetallicheel

loops

Improving the sustainability of our components

Wecontinuetointegraterecycledcontentratherthanvirginmaterialsintoour

components,whereverpossible.Asaresultoftheseongoingefforts,wenowhave:

100%

recycledpolyester

contentin

cushionedinsoles

100%

organiccotton

insocks

STRATEGIC REPORT

59DR. MARTENS PLC ANNUAL REPORT 2024

SUSTAINABILITY CONTINUED

PACKAGING

Mostofourpackagingisusedinour

supplychaintomakesureourproducts

reachtheirdestinationundamaged.

Itisoneofourkeyareasofresource

useandrepresentssignificant

opportunitiestoreduceouruseof

materialsandimplementresponsible

sourcing.Thisiswhywefocuson:

• Reducingthepackagingweuse

• Substitutingexistingpackaging

withrecycledand/ormore

sustainablealternatives

• Ensuringourpackagingcanalso

berecycled

OUR COMMITMENTS:

Packaging

• 100%ofpackagingtocome

fromrecycledorothersustainably

sourcedmaterialsby2028

OPTIMISING AND MINIMISING

OUR PACKAGING

Wecontinuetooptimiseandminimise

ourpackagingwherepossible,including

throughtheremovalofnon-recyclableand

difficulttorecyclematerials.OurPackaging

GuidingPrinciplesprovideastructured

frameworkasweworktowardsour

commitmentfor100%ofpackagingto

comefromrecycledorothersustainably

sourcedmaterialsby2028.

Packagingimprovementsduring

FY24included:

• TherolloutofForestStewardship

Certified(FSC)recycledcardboard

acrossourstandardshoeboxes,

swingtagsandthemajorityofour

largecardboardshippingboxes.

• Phaseoutofnon-recyclablecoated

shoeboxesforallourcollaboration

projects,whichhadrepresentedone

ofourmostsignificantareasofnon-

recyclablepackaging.

• Thecontinuedphasedremovalofplastic

foaminsertsacrossrangesthatdonot

requirethemforprotectivepurposes.We

haveremovedtheseinsertsfrom76.5%

ofourSS24footwearrangesbyvolume

(upfrom35%inAW23).Weare

investigatingasustainablealternative

forproductsthatdorequireprotection,

includingthepotentialuseofFSCrecycled

cardboardoffcutsfromourshoeboxes.

InFY24,wealsostartedtherisk-based

mappingofoursupplychainforwoodpulp,

whichisusedinsomeofourpackaging

components.Thisformspartofourbroader

effortstoensurethatnoneofourproducts,

packagingorstorecomponentsare

associatedwithdeforestation(page58).

Wewillcontinuetofocusontesting,

developingandincludingmore

sustainablematerialsacrossour

productrangeandtakelearnings

fromourmaterialinnovationtrials.

Anotherfocuswillbetoutiliseourdata

systemstoenableannualquantitative

progressreportsagainstour

sustainablematerialscommitments.

WHY IT MATTERS... WHAT WE’RE DOING...

WHAT’S NEXT?

60 DR. MARTENS PLC ANNUAL REPORT 2024

LIFECYCLE

Ourfootwearisversatile,timelessinits

designanddurable.Bypromotingcare

andofferingauthorisedrepair,wehelp

ourconsumersextendthelifeoftheir

footwearevenfurther.Anotherkeypart

ofourstrategyiskeepingourproducts

incirculationthroughresale.Buteven

Dr.Martensbootswillreachtheendof

theiruseablelifeatsomepoint.When

thishappens,wewanttomakesure

therearesustainableend-of-life

solutionsavailablesuchasrecycling.

Theseeffortsarehelpingmoveour

businesstowardsamorecircularmodel.

OUR COMMITMENTS:

Useable life

• Allproductsaligntosustainable

designcriteriaby2028

• Offeroptionsandguidancefor

wearerstomaximiseuseable

lifeby2025

End-of-life

• 100%productssoldhave

sustainableend-of-life

optionby2040

DESIGNING FOOTWEAR THAT

LASTS

Fromtheverystartoftheproductlifecycle,

wewantourfootweartobedesignedwith

sustainabilityinmind.InFY24,werolledout

oursustainabledesigntrainingprogramme,

whichismandatoryforourdesignand

productteams.Theprogrammeisfocused

onembeddingthecoreprinciplesbehindour

product:timelessness,durability,functionality

andsustainablematerialselection.

Italsoprovidespracticalguidanceonhowto

applytheseprinciplesacrossourproduct

creationprocessesasweseektoreducethe

environmentalimpactofourproducts.

MAXIMISING THE USEABLE LIFE

OF OUR FOOTWEAR

InFY24,welaunchedourdirect-to-

consumer,authorisedrepairserviceinthe

UK.Wealsohelpourwearerstomaximise

thelifeoftheirfootwearbysharingguidance

onhowtoproperlycareforthemthroughour

marketing,salesandsocialmediachannels.

Extending our product lifespan with repair

InOctober2023,welaunchedan

authorisedrepairserviceintheUK,

enablingourconsumerstoextendthelife

oftheirDr.Martensfootwear.Theycan

alsochoosetocustomisetheirproducts

withachoiceofwelts,stitchesand

outsolecoloursandstyles,supporting

ourethosofindividualexpression.The

serviceisruninpartnershipwithTheBoot

RepairCompany,whowealsopartner

withonourUKresaleinitiative.TheBoot

RepairCompanyareaLeeds-basedfirm

with120years’experienceofexpertly

repairingandrestoringboots,shoesand

leathergoods.Consumerscanvisit

drmartensrepairs.comtochooseand

payfortheirrepairs.Theythensendtheir

itemstoTheBootRepairCompany’s

facilityinLeeds,wheretheyarerestored,

refreshedandthenreturned.

Allrepairsandcustomisationsarecarried

outusingthesamemachinery,outsoles

andcomponentrythatgointomaking

Dr.Martensproducts.TheBootRepair

teamparticipatedinextensivetraining

atourMadeInEnglandfactory,where

weprovideddetailedguidanceonour

productionmethodsandprinciples.

SincelaunchinginOctober2023,the

repairservicehasrepairedover1,700

pairsofDr.Martensbootsandshoes,

withpositivecustomerfeedbackreceived

acrossratingsitesandsocialmedia.

Weareworkingtoexpandthenumberof

styleswhichcanberepairedthroughthe

schemeandcontinuetoexploreoptions

toexpandtheservicetoourconsumers

inothermarkets.

COMMITMENTS SUPPORTED:

• Offeroptionsandguidanceforwearers

tomaximiseuseablelifeby2025

WHY IT MATTERS... WHAT WE’RE DOING...

FOCUS

Our approach to extending the useable life of our products

CONSUMER

PRODUCT END OF

USEABLE LIFE

EXTENDING LIFESPAN

CARE

REPAIR

RESALE

RECYCLING

PARTNERSHIPS

STRATEGIC REPORT

61DR. MARTENS PLC ANNUAL REPORT 2024

Next,weplantocontinuetofocus

onbuildingourresaleandrepair

recommerceinitiativesintheUK,

theUSAandbeyond.Wewillalso

exploretheuseofmorecircular

materials,includingthepotential

useofleatherandPVCfromnon-

repairableDr.Martensproducts

tomakenewcomponentry.

SUPPORTING END-OF-LIFE

RECYCLING

Eventuallyallourfootwearwillreachthe

endofitslife.Weworkwithexternal

partnersinourUK,EMEAandAmericas

regionstorecyclefootwearthatcannot

berepairedandresoldandisnotfitfor

donation.Theoutputsfromthese

processesareusedtocreatenew

SUSTAINABILITY CONTINUED

Giving footwear a second life through resale

InFY24,wecontinuedtobuildonthe

successofourresaleinitiativeinthe

UKthroughthelaunchofReWair,our

newresalewebsiteintheUSA.

Webelievethatbrandedresalecan

makeasignificantcontributiontowards

theachievementofourlong-term

sustainabilitycommitments.This

includeshavingsustainableend-of-life

optionsforallofourproductsand

achievingNet-ZerobyFY40.InFY24,

wedevelopedamodelinpartnership

withexternalexpertstoassessthe

carbonimpactofourrepairandresale

businessmodels.Themodelcalculated

thatapairsoldthroughourresale

channelcontributes89%lessGHG

emissionsthanapairboughtnew.

Brandedresalealsopresentsasignificant

commercialopportunityandisakey

initiativeunderthedirect-to-consumer

pillarofourDOCSbusinessstrategy.The

second-handfootwearmarketisgrowing

rapidlyandfeedbackfromourconsumers

showsthatmanyofthemwantto

purchaseauthentic,pre-wornDr.Martens

footwear.Inthiscontext,brandedresale

providesapowerfulplatformtoattract

newconsumers,buildbrandloyaltyand

generatenewrevenuestreams.Weare

alsoproudtoaddvaluetothesecond-

handmarketbyrepairing,sanitising

andauthenticatingproductsbeforethey

are resold.

USA

InMarch2024,welaunchedReWair,

ourUSAresaleplatform.Through

ReWair,returned,damagedordefective

Dr.Martensfootwearandbagsare

authenticated,inspected,cleaned

andrestoredbyourexpertthird-party

partner.Consumersareabletopurchase

ReWairproductsviatheDr.Martens

ReWaironlinestore.Productsarethen

securelyshippedtoconsumersinFSC

certifiedboxeswhichareprintedwith

water-basedinks.AspartofReWair,we

arealsotriallingtrade-inattwostores,

whereconsumerscanexchangetheir

wornDr.Martensproductsforavoucher

toputtowardstheirnextpurchase.

Returnedproductswillberepairedand

restoredforresaleviaReWairorrecycled

ifthisisnotpossible.ReWairiscurrently

inanearlystagerolloutandwillundergo

periodicreviewtotakelearningsaswe

continuewithouraimtobuildprofitable

repairandresaleofferings.

Wecontinuetoofferresaleinpartnership

withTheBootRepairCompanyand

DepopintheUK.SinceitslaunchinApril

2022,theonlineshopremainsoneofthe

mostpopularshopsonDepopglobally.

COMMITMENTS SUPPORTED:

• Offeroptionsandguidanceforwearers

tomaximiseuseablelifeby2025

• 100%ofproductssoldhavea

sustainableend-of-lifeoptionby2040

• Net-ZerobyFY40

Taking steps towards

circularity

InFY24webeganworkingwith

ourEuropeanrecyclingpartnerto

investigateinnovationopportunities

usingsegregatedwastematerials

fromDr.Martensproducts.This

includedanongoingtrialthatuses

finishedleatherwastefromrecycled

Dr.Martenstomakeareclaimed

leathermaterial,similartoGenix

Nappa(seepage59).

Wearealsoworkingwiththe

recyclingpartnertoinvestigate

thepotentialcreationofnewPVC

outsolesusingrecycledoutsoles.

Ourpartneralsocontinuesto

recycleproductswhichcan’tbe

repairedorresoldintoshelving

andsurfacingwhichisbeingused

insomeofourshowrooms,stores

andfuturestoreconcepts.

COMMITMENTS SUPPORTED:

• Allproductsaligntosustainable

designcriteriaby2028

• 100%ofproductssoldhave

sustainableend-of-lifeoption

by2040

1460 Reclaimed Leather

materialsandproducts.Thankstothese

partnerships,productsthatarereturned

toDr.MartensintheUK,EMEAand

Americasthatcan’tberepaired,resoldor

donatedareinsteadrecycled.Ournext

focusistoinvestigaterecyclingoptions

acrossourAPACregion.

us.rewair.drmartens.com

FOCUS FOCUS

WHAT’S NEXT?

62 DR. MARTENS PLC ANNUAL REPORT 2024

PEOPLE

Weinvestinourpeopleandcreateanenvironment

inwhichtheyhavetheopportunitytodeveloptheir

fullpotential.

Thisisreflectedinourfocusonenhancingourend-to-end

employeeexperience,engagementandculture.We’realso

committedtocreatingaworkplacewhereourpeoplefeel

included,acceptedandempoweredthroughourdiversity,

equityandinclusion(DE&I)strategy.Ourapproachis

underpinnedbyourrespectforhumanrights,includingthose

ofthepeopleworkinginoursupplychain.Wearealsoproud

tochampionandsupportimportantsocialjusticeissues

aroundtheworldthroughtheDr.MartensFoundation.

FOCUS AREAS AND

COMMITMENTS

Thefollowingcommitmentsaretobe

achievedby2027:

Diversity, equity and inclusion

Ethnicity:

• 30%underrepresentedcommunities

inseniorleadershiproles(GLTand

directreports)

Gender:

• 50%womeninseniorleadershiproles

(GLTanddirectreports)

• Increasenon-binarycolleaguesfrom

2%to4%globally

FURTHER INFORMATION ON HOW

WE APPROACH HUMAN RIGHTS

AND COMMUNITY, THE OTHER TWO

FOCUS AREAS OF PEOPLE,CAN

BEFOUNDONPAGES70AND71

PROGRESS HIGHLIGHTS

RELATED UN SDGS

RESPONSIBLE

PURCHASING

Developedandlaunchedourfirst

ResponsiblePurchasingPracticesCharter

100%

ofourTier1andKeyTier2suppliersCSR

auditedmetourhighstandards

10%PTS

increaseinwomeninseniorleadershiproles

sinceFY23(FY23:36%,FY24:46%)

TOFINDOUTMORE,SEE OUR

SDG MAPPING EXERCISE AT:

DRMARTENSPLC.COM

STRATEGIC REPORT

63DR. MARTENS PLC ANNUAL REPORT 2024

RESPONSIBLY MANAGING

OUR SUPPLY CHAIN

OUR GLOBAL SUPPLY CHAIN

Wearecommittedtomaintainingpositive,

collaborativepartnershipswithourthird-

partysuppliers.Thisapproachunderpinsour

abilitytoachievethehighestlevelsofquality

andsustainability.Oursuppliersinclude:

OUR POLICIES

Oursupplierrequirementsaresetoutinour

SupplierCodeofConduct.Thisisbasedon

theEthicalTradeInitiativeBaseCodeand

theconventionsoftheInternationalLabour

Organization.TheSupplierCodeofConduct

integratesarangeofrequirementsaround

forcedlabour,childlabour,subcontracting,

homeworkingandmodernslavery.Similarly,

suppliersaresubjecttoourSupplier

EnvironmentalStandard.

Thesedocumentsareintegratedintothe

MasterSupplierAgreementswemaintain

withourTier1suppliers,alongwiththe

followingpolicies,whichsetoutadditional

supplierrequirements:

• AnimalDerivedMaterialsPolicy

• Anti-BriberyandCorruptionPolicy

• GeneralMaterialsRequirementPolicy

• MigrantWorkerPolicy

• NeedlePolicy

CONSUMER

PRODUCT END OF

USEABLE LIFE

• Tier1suppliers:productmanufacturers,

whichareprimarilybasedinAsia

• KeyTier2suppliers:suppliersofstrategic

componentssuchastanneries.

• Tier2suppliers:suppliersofother

componentry.

Forfurtherinformationonhowwemanage

oursupplychain,seepage55,aswellas

ourlatestModernSlaveryStatementwhich

canbefoundonourcorporatewebsite.

Similarly,wehavecontractualprovisions

thatrequireouragents,distributorsand

franchiseestocomplywiththesepolicies.

HOW WE ENGAGE OUR

SUPPLIERS

OurCSRteamsarebasedinkeysourcing

locations,wheretheyworkdirectlywithnew

andexistingTier1andKeyTier2suppliers

andtheirfactories.Thishelpsthemwork

collaboratively,transparentlyandadvocates

forsupplierownership.Italsofacilitatesthe

quickidentificationandremediationofany

potentialissues,includingthecompletionof

correctiveactionplans.Suppliersalso

attendTier1supplierconferences,where

weshareinformationandlearnings,and

promotecollaborativecommunication.

1. OurTier1factorylistissharedonourwebsiteandisupdatedeverysixmonths.

2. BasedontheDhakaPrinciplesdevelopedbytheInstituteforHumanRightsandBusiness,andbroader

internationalbestpractice.

3. Sedex,BSCIandSA8000,WRAPandSCLP.

HOW WE MONITOR

PERFORMANCE

Weapprovenewfactoriesandmonitortheir

performancethroughourCSRmonitoring

programme.Independent,third-partyCSR

auditsareconductedbeforeproduction

beginsatnewTier1andselectedKeyTier2

supplierfactories.Inaddition,wecarryout

CSRmonitoringofexistingTier1and

selectedTier2suppliers.

AuditsareconductedatourTier1footwear

suppliersatleastannually.Wehavealso

expandedourCSRmonitoringprogramme

toourKeyTier2suppliers.Theseincluded

tanneriesandPVCgranulatesuppliers.

ForKeyTier2suppliersthatarenotcurrently

subjecttotheprogramme,werequire

recognisedsocialauditreports

thathave

beencarriedoutwithinthelast12months.

OVERVIEW OF OUR GLOBAL SUPPLY CHAIN

EXTENDING LIFESPAN

RECYCLING

PARTNERSHIPS

CARE

REPAIR

RESALE

MAKING AND SOURCING

DISTRIBUTION

RETAILING, ECOMMERCE, WHOLESALE

RAW MATERIAL

SUSTAINABILITY CONTINUED

64 DR. MARTENS PLC ANNUAL REPORT 2024

100%

FY22 FY23 FY24

100%

FY22 FY23 FY24

Not reported

Responsible Purchasing Practices Charter

InFY24,weworkedwiththird-party

expertstodevelopthefirstiterationofour

ResponsiblePurchasingPracticesCharter.

Thiswasdevelopedfollowingareviewof

currentpractices,processesandpolicies,

aswellasbothinternalandsupplier

interviews.Duringtheengagement

process,suppliersindicatedthat:

• Dr.Martensisclearandconsistentin

itscommunications,andthereisagood

senseoftrustbetweentheCompany

anditssuppliers.

• Ordersarerarelychangedafterthe

purchaseorderisplaced,andwherethis

doeshappen,supplierscangenerally

negotiatedifferentleadtimes.

• Suppliersfeelthat,whilepriceisimportant

forDr.Martens,itsconsiderationsextend

tootherissues–includingqualityand

sustainability(whichwasnotthecasefor

alltheircustomers).

Dr.Martensendeavourstointeractandtreat

ourmaterial,productandservicesuppliers

accordingtothefollowingprinciples:

1. RELATIONSHIPS

Weinvestinoursuppliers,andvalue

long-termpartnershipsinwhichwe

canworktogethertoimprovemutual

businessperformance.

2. PAYMENT TERMS

Weoperatetoanagreedpayment

schedule.

3. PLANNING

Weforecastandcommunicateourorder

requirementswellaheadsothatoursuppliers

cancarefullyplanforwhattheyneed.

4. FAIR LABOUR COSTING

Weensurelegallycompliantand

competitiveprovisionforwagesandbenefit.

5. TRAINING

Wetrainallourrelevantteamsonwhat

itmeanstopurchaseresponsibly.

6. COMMUNICATIONS

Wevaluetransparencyandunderstand

theimportanceoftwo-way,openand

honestcommunication.

7. SUPPLIER EXIT

Wewillonlyundertakeasupplierexit

afterfullconsiderationandinaresponsibly

managedway.

8. SUSTAINABILITY

Weworkwithoursupplierstosetclear

expectationsaroundsustainability,

includinghumanrightsandenvironmental

valuesandcommitments.

Weexpectoursupplierstoadoptthespirit

oftheseprincipleswiththeirownsuppliers.

FollowingthedevelopmentoftheCharter,

wenowplantoembeditsadoptionthrough

thedevelopmentoftrainingforourpeople

andsuppliers.

1.InlinewithIntertekWorkplaceConditionsAssessmentscoringmethodology.

Audited Tier 1 footwear suppliers

meeting our high performance

standards (i.e. scores of 75%

or more

) in CSR audits

Audited Key Tier 2 suppliers

meeting our high performance

standards (i.e. scores of 70%

or more) in CSR audits

Next,weplantodeveloptrainingto

rolloutourResponsiblePurchasing

PracticesChartertoourpeople

andsuppliers.

WeusetheWorkplaceConditions

Assessment(WCA)on-siteauditprotocol

forbothourauditingandmonitoring.

Thisassessesrisksaround:

• Labour:Includingchildlabour,forced

labour,discrimination,freedomof

association,employmentcontractand

discipline,harassmentandabuse.

• Environment:Includingregulatory

complianceandcertifications.

• Business practices:Includingissues

rangingfromintegritythroughtodata

protectionandcompetitionlaw.

• Management systems:Fromsocial

compliancepoliciesthroughtothe

auditingofsuppliers,subcontractors

andlabourproviders.

• Wages and hours:Includingworking

hours,wagesandbenefits.

• Health & Safety:Includingwork

facilities,emergencypreparedness,

occupationalinjury,machinesafety,

safetyhazards,hazardousmaterials

anddormitoriesandcanteens.

Auditsareconductedonasemi-announced

basis.Suppliersaregivenawindowof30

daysduringwhichmonitoringauditscould

takeplace.Thefrequencyoffollow-up

auditsisdeterminedbyeachsupplier’s

auditrating.Ifanynon-conformancesare

identified,weworkwiththesupplierto

developcorrectiveactionplansandcarry

outfollow-upcheckstoensurethesehave

beenimplementedinpractice.Intherare

eventthatasupplierfailsinthisregard,

wemayterminatetherelationship.

Third-party due diligence

Wealsoapplyaduediligenceprocesswhen

enteringintonewsupplierrelationships,

includingbothaVendorRiskAssessment

andcompliancescreening.Thisprocess

identifiessupplierrisks,includingethical

concernsandregulatorynon-compliances.

Thestringencyoftheprocesswilldepend

onfactorssuchaslocation,activitiesand

contractvalue.Inaddition,weareplanning

toexplicitlyintegratehumanrightsintothe

processaspartofourbroadereffortsto

furtherenhanceourmanagementefforts.

Supplier CSR audit results:

WHAT’S NEXT?

STRATEGIC REPORT

65DR. MARTENS PLC ANNUAL REPORT 2024

INVESTING IN

OUR PEOPLE

Defining our culture

RebelliousSelfExpressiondefines

whatisuniqueaboutourbrand

andourculture.Thisisthethread

thatconnectsallofuswithinthe

Company,ourproductsandour

customers.Itissupportedbythree

corevalues:

BE YOURSELF

ACT COURAGEOUSLY

SHOW YOU CARE

InFY24,wefocusedonthe

consistentcommunicationofour

valuesandonensuringtheyare

embeddedacrosstheemployee

journey.Thisincludedtheactive

rolloutofourvaluesbyoursenior

leaders,whohavebeenhelping

theirteamsunderstandwhatthe

valuesmeantothem.These

conversationshavebeen

supportedthroughtheuseofour

RebelliousSelfExpression

trainingtoolkit(launchedin2023),

whichwehavesharedwithour

teamstorunsessionsthemselves.

REBELLIOUS

SELF

EXPRESSION

successatDr.Martens.Foreachsuccess

factorwehavearticulatedspecificbehavioural

expectationsforourdifferentcareerlevels

acrossthebusiness.Theframeworkwillbe

rolledouttothebusinessinFY25,andwillact

asthefoundationforcareerdevelopment,

goalsetting,feedbackconversationsand

talentacquisitionpractices.

Otherkeyinitiativestosupportour

employeesduringFY24included:

• Aglobalprogrammetoensurethat

employeeshavesetperformanceand

developmentgoalswithinouronline

developmentplatform.Thisallowsour

peopletohavegreaterclarityonwhere

tofocusandhowtheirworklinkstoour

DOCSstrategyandvalues.

• TherolloutofourRetailManagement

programmeinourEMEAandAmericas

regionstohelpensureourstore

managersandassistantmanagers

developtheleadershipskillsneeded

inthestoreenvironment.

• ThelaunchofourTalentHub,which

provideshiringmanagerswithclear

andconsistentguidancetoassistthem

duringthetalentacquisitionprocess.

Listening and engagement

Webelieveitisimportanttolistentoand

communicatewithourpeople,inawaythat

isconstructive,meaningfulandimproves

theemployeeexperience.Thisis

demonstratedthroughourannualglobal

engagementsurvey,akeypartofourwider

listeningstrategy.

ThroughoutFY24,wecontinuedourNED

ListeningsessionsledbyourEmployee

RepresentativeNon-ExecutiveDirector,

RobynPerriss.Furtherdetailsonthese

workshop-basedsessionscanbefound

onpage105.Inadditiontoourannual

EngagementandInclusionSurvey,wealso

launchedreal-timesurveystocheck-inon

howourpeoplefeelabouttheirworking

lives.Theseenabledcontinuouslistening

inameaningfulandactionableway,

drivingleadershipaccountabilitywithmore

regularinteractions.

Asaresultofthesediscussionsand

broaderemployeefeedback,wehave:

• Implementedarangeofnewleadership

andemployeedevelopmentmeasures.

• Openedupnewonlinecommunication

channels,includingteam-specific

channels.

• Awardedallemployeesanadditionalday

ofannualleavewithinFY24intheform

ofaWellbeingDaylinkedtoourvalueof

‘BeYourself’.

• Increasedthenumberofsocialevents

toencouragegreatercollaboration.

Feedback and investing in

leadership

Weactivelysupportouremployeesasthey

pursuetheirownlong-termdevelopment

andambitions,includingthroughthe

provisionofresources,guidanceand

opportunities.Wedothisthrough:

• TheLEADexperience,offeredtoallofour

GlobalManagementTeam(GMT)

leaders

inFY24,andincorporating360⁰feedback

andstrength-basedassessmentsalong

withleadershipcoaching.

• Investmentintrainingournewleaders,

withafocusonleadershipdevelopment,

personaleffectiveness,challenging

conversationsandfeedback.

InFY24,weembarkeduponaprojectto

extendourleadershipframeworktoapply

toallrolesacrossthebusiness.Througha

programmeofinternalandexternalresearch

wedevelopedabehaviouralframeworkwhich

encompasseseightfactorswhichenable

1. Direct reports to our Global Leadership Team (GLT).

66 DR. MARTENS PLC ANNUAL REPORT 2024

SUSTAINABILITY CONTINUED

Accepted

Included

Equipped

Valued

Growing

Inspired

4.24

4.18

4.01

4.00

3.60

3.59

Listening to and engaging our people

Feeling‘Included’continuestobeahigh

scoringfactorandahallmarkofour

culture.Buildingonthiswecontinue

toscorehighlyin‘Accepting’,which

encompassesourdiversitymeasures.

INSIGHTS FROM OUR 2024 ENGAGEMENT AND INCLUSION SURVEY

Wearecommittedtobuildinganengagingculturewhereourpeoplecanthrive.Wecarryoutanengagementsurveyeveryyearto

understandthelivedexperienceofourpeopleacrossDr.Martens.OurMarch2024EngagementandInclusionSurvey,towhich

92%(3,158)ofourpeopleresponded,highlightedwherewearedoingwell,andwhereweneedtodobetter.Allareasofperformance

arescoredona0to5scale,where5isthebestpossiblescore.

PERFORMANCE AREAS:

Accepted: Agree that Dr. Martens encourages diversity

Included: Feel you can express yourself at work

Equipped: Feel empowered and set up for success

Valued: Feel that your voice and contribution matters

Growing: Keep evolving in your work and as a person

Inspired: Inspired to be part of Dr. Martens’ future

Supporting wellbeing

Ourapproachtolookingafterourpeople

looksatallmaterialaspectsoftheirmental,

physical,socialandfinancialwellbeing.This

isdemonstratedthroughinitiativessuchas

themaintenanceofourfreeandconfidential

EmployeeAssistanceProgramme,

voluntaryMentalHealthNetwork,learning

anddevelopmentprogrammes,wellbeing

events,provisionoffreehealthyoffice

snacksandannualvolunteeringallowance.

InFY24,wetookthedecisiontoincreaseour

annualleaveprovisionintheAPACregion

tobringitinlinewithourGroupaverage,

changedourholidayarrangementsintheUK

tomakeiteasierforpeopletousetheirfull

annualentitlementandcontinuedtheglobal

rolloutofoursharescheme.

FOCUS

Werecognisethatweneedtobuild

momentumandimprovehowpeoplefeel

aboutInspiredandopportunitiestoGrow

atDr.Martensandwillcontinueourefforts

inthisregardintotheyearahead,withthe

launchofabehaviouralframeworkforall

ourpeopleinFY25(page66).

Ouroverallengagementscorewas3.94.

Thiswasaslightdecreaseonlastyear

(3.98)andhasmeantthatwehavemissed

ourExecutiveDirectors’bonustarget.

Formoreinformation,seepage127.

STRATEGIC REPORT

67DR. MARTENS PLC ANNUAL REPORT 2024

‘BeYourself’isoneofourcorevalues.

Diversity,equityandinclusion(DE&I)

helpseveryonewhoworksforusfeel

included,acceptedandempowered.

Itnotonlysupportsthedevelopment

ofpassionate,creativeandresilient

teams.Italsoensuresthatevery

aspectofourbrandreflectsour

commitmenttoDE&I.

OUR COMMITMENTS:

Thefollowingcommitmentsare

tobeachievedby2027:

Ethnicity

• 30%underrepresented

communities

inseniorleadership

roles(GLTanddirectreports)

Gender

• 50%womeninseniorleadership

roles(GLTanddirectreports)

• Increasenon-binarycolleagues

to4%globally

Inaddition,wealsoaimtoimprove

accessibilitytoourstores,websiteand

officesforconsumersandemployees

livingwithdisabilities.

DIVERSITY, EQUITY

AND INCLUSION

AN EQUITABLE, MORE

INCLUSIVE WORKPLACE

Wemakeongoingeffortstoensureour

peoplereflectthesocietiesinwhichwe

work.Butwewanttogofurther.Weare

inspiredbyourcurrentandpotential

diversityandareworkingtoensure

employeesexperienceallthebenefitsofa

diverse,equitableandinclusiveculture.In

FY24,werecruitedanewGlobalHeadof

DE&Iwhowillleadoureffortsinthisspace.

Duringtheyear,wefocusedonthefollowing

areasthatcollectivelysupportprogress

towardsourcommitmentstoethnicity,

genderanddisability:

• Training, culture and leadership:

Thisincludedhostingtrainingworkshops

tohelpourMadeInEnglandfactory

leadersandstaffbuildtheirknowledge

aroundDE&Ianddriveempathy

andunderstandingwithinthismulti-

generationalworkforce.Theprogramme

focusedonidentifyingandaddressing

bothconsciousandunconsciousbias,

promotinginclusivelanguageand

buildinganinclusivemindset.Following

aDE&Ilisteningsessionwithstore

managersintheUSA,wealsoenhanced

ourrecruitmentsystems.

• Global DE&I recruitment audit:

Wealsocommissionedanindependent

externalreviewtoimproveDE&Iin

ourglobalrecruitmentpractices.

Thisresultedinthedevelopmentof

recommendationsfocusedontraining

forhiringmanagers,aswellasimproved

datagatheringtotrackcandidates

throughtherecruitmentprocess.Weplan

toimplementtherecommendations

acrossourregions.

• Data collection and monitoring: We

implementedthecollectionofemployee-

declareddiversityinformationviaa

‘Self-ID’programmetoenhanceourdata,

informourDE&Iinitiativesandtrackour

progresstowardsourtargets.Ournext

focusistofurtherimprovetheself-

declaredinformationinregionswhere

uptakehasbeenslower.

• Inclusive practices: We also started

worktoidentifyopportunitiestoimprove

accessibilityforconsumers.We

conductedaDE&Ilisteningsessionwith

storemanagersintheUSAwhich

identifiedareasofimprovementincluding

expandingunisexsizinganddeveloping

guidelinesformoreinclusivevisual

merchandising.

Inaddition,wecontinuedtoparticipateina

rangeofrelatedexternalinitiatives,including:

• ChangetheRaceRatio

• DiversityinRetail

• DiversityandInclusioninAsiaNetwork

Commitment:

30% underrepresented

communities in senior leadership

roles (GLT and direct reports)

FY24

23%

(FY23: 22%)

Commitment:

50% women in senior leadership

roles (GLT and direct reports)

FY24

46%

(FY23: 36%)

Commitment:

Increase non-binary colleagues

from 2% to 4% globally

FY24

3.3%

(FY23: 6%)

WHY IT MATTERS... WHAT WE’RE DOING...

HOW WE’RE DOING

1. Wehaveremovedthetargettoincreasemale

representationacrossourretailstoresto40%

becausewebelieveitnolongeralignswith

ourDE&Istrategy.Weremainfocusedon

progressingtowardsourotherDE&Itargets

andcommitments.

Gender diversity at Dr. Martens

GENDER DIVERSITY OF

DIRECTORS SEEP91

GENDER DIVERSITY OF SENIOR

MANAGERS SEEP90

GENDER DIVERSITY OF GLOBAL

WORKFORCE SEEP113

68 DR. MARTENS PLC ANNUAL REPORT 2024

SUSTAINABILITY CONTINUED

Building awareness and allyship

AtDr.Martensweencourageopen

conversationsaboutthetopicsthatmatter

tous.Partofthewaywedothisisthrough

hostinginternalandexternaleventsthat

buildfoundationallevelsofawareness

amongourpeople,buildingtheir

awareness,promotingallyshipand

encouragingcriticalthinking.

• Ethnicity: WecelebratedBlackHistory

MonthwithourpeopleinOctober2023

acrossourUK,EMEAandAPACregions,

andintheAmericasinFebruary2024.

Eventsincludedpaneldiscussions,

activationsandtalksfromcharities

includingfromTheStephenLawrence

DayFoundation(abeneficiaryofa

Dr.MartensFoundationgrant).

• Gender:Wewanttoofferaworkplace

thatworksforallgenders.Thismeans

providingequalopportunities,aninclusive

culture,asustainablework-lifebalance

andsafeworkingconditions.InFY24,

wecontinuedourworkwithnon-profit,

Catalyst,tomakesureourworkplace

isoneinwhichwomencanthriveand

achievetheirfullpotential.InMarch2024

wecelebratedInternationalWomen’sDay

withourpeopleinternallythroughpanel

discussions,lunchandlearnsessions

andotherresourcesandevents.

• LGBTQIA+:Weareaproudsupporter

oftheLGBTQIA+community,whichis

wellrepresentedwithinourworkforce,

accountingforapproximatelyathirdof

ourpeople.Itisacommunitythathas

helpeddefinewhatDr.Martensistoday

andwillcontinuetohelpshapeourfuture.

InadditiontoourongoingPrideevents

andactivities,inFY24wesupportedthe

2023GayGamesinHongKong,through

specialoffersforathletesandvolunteers.

Bysupportingeventsofthisnature,we

againhopetoencourageourpeopleto

thinkabout,understandandhelpaddress

someofthechallengesfacedby

LGBTQIA+individuals,bothinsideand

outsideoftheworkplace.OutRight,a

charitywhichholdsaconsultativestatus

Nextyearweplantodeliverinclusive

leadershiptrainingtoenableleadersto

cascadetheirknowledgearoundDE&I,

improveourcollectionofDE&Idata

andcontinuetobuildcriticalthinking

aroundDE&Iacrossthebusiness.

WHAT’S NEXT?

attheUnitedNationsEconomicand

SocialCouncil,isoneoftheflagship

partnersoftheDr.MartensFoundation

andishelpingprovideawarenessand

volunteeringopportunitiesinour

employeepopulation.

• Disability: Weimprovedaccessibility

toourinternalintranetbyintegrating

anaccessibilitywidget.Thisallows

Dr.Martensemployeeswhohavevarious

disabilitiestonavigatethiscriticalinternal

communicationschannel.

STRATEGIC REPORT

69DR. MARTENS PLC ANNUAL REPORT 2024

HUMAN RIGHTS

Wearecommittedtorespectinghuman

rights,notonlyinourownworkforce,but

alsoinoursupplychain.Weimplement

thiscommitmentbyengagingour

suppliers,raisingtheirawarenessand

monitoringtheirperformance.

Ourcommitmenttorespectinghuman

rightsisimplementedthroughourDOCtrine

(ourbusinesscodeofconduct),Supplier

CodeofConduct,MigrantWorkerPolicy,

Anti-SlaveryandHumanTraffickingPolicy

andDE&Istrategy.

Whenitcomestoourownemployees,we

offeranindependent,confidentialhotlinethat

peoplecanusetoraisehumanrights

concernsandgrievancesiftheyarise.Issues

arereviewedbytheGlobalComplianceTeam

andareescalatedviatheAuditandRisk

Committeeasappropriate.Topicsraisedvia

thehotlineinFY24includedDiscrimination,

SexualHarassment,EmployeeRelations

andWorkplaceViolence/Threats.

Oursuppliersandtheirworkforceareimportant

tous,thereforeourscopeofunderstanding

humanrightsrisksandopportunitiesextends

tooursupplychainpartners.

CSR monitoring programme

Akeymechanismweusetomanage

humanrightsriskswithinoursupplychain

isthroughourCSRmonitoringprogramme.

Theprogrammeisappliedwhenwe

onboardTier1andcertainKeyTier2

suppliers,whicharethensubjecttoongoing

auditstoensuretheircompliancewith

relevantlabourlaws,industrystandardsand

ourownpolicies.ThisincludesourSupplier

CodeofConduct,whichisbasedonthe

EthicalTradingInitiative(ETI)BaseCode

andappliesarangeofdetailedsupplier

obligations.Theseobligationsaimto

ensurethatthoseworkinginoursupply

chaincan(forexample):

• Freelychooseemployment

• Freelyassociateandtakepartin

collectivebargaining

• Notbesubjecttochildlabour

• Notbesubjecttodiscrimination

FORMOREINFORMATIONON

OUR SUPPLIER CSR AUDITS,

SEEPAGE64.

Anti-modern slavery programme

Weexpecthighstandardsofeachotherand

oursupplypartners.Wewillneveraccept

modernslaveryinanyformandwetake

ourresponsibilityseriously.InFY24,we

continuedtoraiseawarenessaround

humanrights,withaparticularfocuson

modernslavery.Weincludeanti-modern

slaveryandforcedlabourclauseswithin

Nextyearweplantofurtherintegrate

humanrightsintoourthird-partydue

diligenceprocess.Wealsoplanto

implementasupplychainmappingtool

tosupporthigherlevelsoftransparency

andtohelpusidentifyhumanrights

risksmoreeffectively.

Human rights due diligence review

InFY24,wecommissionedathird-party

experttocarryoutanindependenthuman

rightsduediligencereview.Thisaimedto

identifythestrengthsandweaknessesinour

currenthumanrightsprogrammeandto

providerecommendationsforimprovement.

Theassessmentwasbasedonareviewofour

relevantmanagementsystemdocuments

andinterviewswithinternalstakeholders.

Thefindingswerethenbenchmarkedagainst

theproposedEUCorporateSustainability

DueDiligenceDirective(CSDDD),theOECD

ResponsibleBusinessConductGuidance,

andtheOECDDueDiligenceGuidancefor

ResponsibleSupplyChainsintheGarment

andFootwearSector(OECDGarmentand

FootwearGuidance).

Theassessmentfoundwehaveagood

foundationforourhumanrightsprogramme,

andperformedwellwithrespectto:

• Thecommunicationofpolicycommitments

internally,tosuppliersandtothepublic.

• Theinternalreportingofriskassessment

findingstoseniormanagement.

Theassessmentalsofoundwehavegood

oversightofourproductsupplychainatTier1

andmostofTier2(i.e.whereourexisting

humanrightsduediligenceeffortsarefocused).

Italsoidentifiedanumberofareaswherewe

couldfurtherimproveourmanagement

approach.Itrecommendedweexpandthe

scopeofourhumanrightsprogrammeand

duediligencetocaptureabroaderrangeof

suppliers.Asaresult,wearereviewingand

developingourCompanypolicies,andworking

toembedhumanrightsriskacrossour

businessinteractionswithallvendortypes.

COMMITMENTS SUPPORTED:

• Respectforhumanrights

ourcontractualagreementswithsuppliers.

Wealsooffer‘ForcedLabourandEthical

Trade’trainingtoallofouremployees.

FORFURTHERINFORMATION

ON HOW WE ADDRESS MODERN

SLAVERY RISKS IN OUR SUPPLY

CHAIN,SEEPAGE64.INADDITION,

OUR FULL MODERN SLAVERY

STATEMENTCANBEFOUNDON

OURPLCWEBSITE

WHY IT MATTERS...

WHAT WE’RE DOING...

FOCUS

WHAT’S NEXT?

70 DR. MARTENS PLC ANNUAL REPORT 2024

SUSTAINABILITY CONTINUED

COMMUNITY

Wewanttoplayapositiveroleinsociety,

bothwithinourlocalcommunitiesand

atagloballevel.Thisisaboutacting

courageouslyandshowingwecare.

Andwewantourpeopletofeel

empoweredtodothesame.This

meansgivingavoicetotheissues

thatneedraising,supportingthe

communitieswhoneeditandproviding

fundingtothosecausesthatmatter.

DELIVERING CHANGE

THROUGH OUR OWN

ACTIONS

Wehaveastrongtrackrecordofsupporting

socialjusticecauses.Thisincludesafocus

onanti-racismandLGBTQIA+rights.In

FY24,webuiltonourexistingeffortsby

facilitatingandencouragingemployee

volunteering,includingthroughthe

organisationofteamvolunteeringdays.

WealsocontinuedtoencourageourUSA

employeestousetheirpaidJuneteenth

holidaytovolunteerintheircommunities.

VolunteersfromourAmericasheadquarters

inPortlandattendedatwo-dayJuneteenth

Oregonparadeandfestival.

Inaddition,wesetupaGlobalChampions

Networktoconnectanddriveengagement

betweenouremployeesandtheDr.Martens

Foundation.Championsaretaskedwith:

• AmplifyingtheimpactoftheFoundation,

bypromotingtheinvolvementoftheir

colleagueswiththeorganisationsitfunds

andbyengagingwithcolleaguesto

nominatecharitiesfortheFoundation

tosupport

• SupportingtheFoundationwithresearch

andcommunicationsandmeeting

regularlytoidentifyopportunitiesto

amplifytheworkfurther

• Participatinginthegrantapplication

reviewprocess,learningnewskills

andbetterunderstandingtheworkings

ofcharities

DELIVERING CHANGE

THROUGH THE DR.

MARTENS FOUNDATION

TheDr.MartensFoundationisan

independentgrant-makingcharity,which

wehelpedestablishin2021.Todate,

Dr.Martenshasprovided£0.8minfunding

totheFoundation.Itchampionssocial

justicecausesbyaddressing:

• Theimmediateneedsofunderserved

communities

• Theunderlying,longertermdrivers

ofinjustice

TheFoundationmakesgrantsthroughits

grassrootsprogrammeanditsRighttoBe

programme.Itseffortsareguidedbyits

fourpillarsofsocialjustice.

Inaddition,theFoundationhastheability

toprovideimmediategrantstohelp

addressemergenciesanddisasters.

InFY24,forexample,itmadea£150,000

emergencygranttotheBritishRedCross.

£1.9M

donatedto65organisationsbythe

Dr.MartensFoundationinFY24

Human rights

Protectingandrespecting

everyone’shumanrightsso

thattheycanenjoybasic

rightsandfreedoms

Participation

Ensuringpeopleareinvolved

withdecisionsthatgoverntheir

lives,particularlythosethat

aremarginalisedandexcluded

insociety

Equity

Impartiality,fairnessand

justiceforallpeopleinsociety

withafocusoneradicating

systeminequalitiesand

embeddedbiases

Access

Peopleshouldhaveequal

accesstoresourcesincluding

education,healthcareand

employmentopportunities

The Foundation’s four

pillars of social justice

WHAT WE’RE DOING...

WHY IT MATTERS...

STRATEGIC REPORT

71DR. MARTENS PLC ANNUAL REPORT 2024

TheupcomingfocusfortheDr.MartensFoundationisto

continuetoprovidefundingtoitspartnersanddevelopa

communicationsplan,tobetteramplifythegreatworkof

itscharitypartnersexternally.Thiswillalsogiveconsumersan

opportunitytofindoutmoreabouttheDr.MartensFoundation

andwhatitstandsfor.

Right to Be programme

TheRighttoBeprogrammeisdesignedtochallengethe

systemsthatperpetuatesocialinequities.Ittypicallyprovides

multi-yearhigher-valuegrantstocharitiesthataddressissues

suchasracialinjustice,genderinequalityandadvocatingfor

LGBTQIA+rights.InFY23,fiveorganisationswerechosento

receivefundingof£1.9macrossprojectslastingapproximately

twotothreeyears.£580,000ofthefundingcommittedwas

grantedtotheRighttoBepartnersduringFY24.Theimpacts

ofthesegrantstodatearedetailedbelow.Wehaveusedthe

LGBTQIA+acronymrequestedbyeachcharity.

TheWomen’s

Foundation

Outright

International

ReBit NationalBlack

JusticeCoalition

EuropeanNetwork

AgainstRacism

Project

timeframe

Dec 2022

toJan2025

Dec 2022

toJan2026

Apr 2023

toMay2025

Dec 2022

toJan2026

Jan2023

toFeb2026

Location

HongKong Global Japan USA Europe

Focus

theme

Women’s

empowerment

LGBTIQA+rights LGBTQ+rights LGBTQ+Rights&

RacialJustice

Right

to Be

funding

impact

to date

The Dr. Martens

Foundation is

supporting The

Women’s Foundation

Mentoring

Programme, Male

Allies and Gender

Equality and Inclusion

Working Group, its

STEM programme for

underprivileged girls

and improvements to

its IT infrastructure.

The Dr. Martens

Foundation supports

Outright’s research,

grantmaking and

advocacy programs

and campaigns to

protect and advance

LGBTIQ equality,

including projects to

promote LGBTIQ-

inclusive humanitarian

assistance, livelihood,

and to enhance

knowledge about

LGBTIQ people with

policymaking and

philanthropic

stakeholders.

The Dr. Martens

Foundation is supporting

ReBit to provide training

for teachers and

students on the needs

and rights of the

LGBTQ+ community.

It also provides support

to corporations with

research, consulting

services and publishing

information on the

needs of the LGBTQ+

community.

The Dr. Martens

Foundation is funding

NBJC’s action hub for

Black LGBTQ+

communities and

organisations to engage

with decision-makers to

advance policy

solutions. The initial

funding supported NBJC

to draw up a public policy

agenda which ensures

that the Black LGBTQ+

communities’ unique

needs are at its centre.

The Dr. Martens

Foundation funding

supports the

development of

a community

engagement and

movement-building

model for anti-racism

organisations.

It also supports

the development

of academic

communities and

awareness raising

of structural racism

in Europe.

WHAT’S NEXT?

Grassroots programme

TheGrassrootsprogrammeallowsouremployeestonominatecharitiesandgrassrootsorganisationsforsupportfromtheDr.Martens

Foundation.InFY24,morethan£1mwasawardedthroughthisprogrammeto59partners(FY23:£531,000/28grants).

72 DR. MARTENS PLC ANNUAL REPORT 2024

SUSTAINABILITY CONTINUED

SUSTAINABILITY

GOVERNANCE

TheBoardhasultimateresponsibilityfor

overseeingESGrelatedactivitiesacrossthe

business.Thisincludesoursustainability

strategy.Assustainabilityincreasingly

becomescentraltoourbrandoffering,

sustainabilitywillbesponsoredbyournewly

appointedChiefBrandOfficer,IjeNwokorie,

fromFY25.Thismovewillenableustofurther

embedoursustainabilityworkacross

Dr.Martens.DuringFY24,sustainability

topicsdiscussedatBoardmeetingsfocused

onrepair,resale,innovativematerialtrials,

andengagementsurveyresults.ESG

horizonscanningreportswerealsoprepared

fortheBoardonaquarterlybasis.

TheSustainabilityCommitteeassiststhe

Boardbyprovidingreviewanddirectionfor

thesustainabilitystrategy.TheSustainability

CommitteeischairedbyourCEO,Kenny

Wilson,andincludesourCOOandCPSO,

plusotherkeyfunctionalheads.Itreports

directlytotheBoardandprovidesregular

updatestohelpdeterminethefocusand

directionofthestrategy.

InFY24,theCommitteemetonabi-

monthlybasis,withrelevantworkinggroups

feedingintothesemeetings.Ourworking

groupsarefocusedonthefollowing:

• Operations Working Group:Ensuring

highstandardsacrossouroperationsand

supplierbase,includingthemaintenance

ofstrongCSRstandardsandthe

minimisationofenvironmentalimpacts

• Materials and Packaging Working

Group:Identifyinganddelivering

sustainabilityimprovementsacross

allofourproductsandpackaging

• Lifecycle Working Group:Reducingthe

impactofourproductsthroughouttheir

lifecycle,fromdesignthroughtoend-of-life.

Ourclimateworkstream(whichisaimed

atreducingandreportingourScope1,2

and3emissions)isofacross-functional

natureandfeedsintoeachoftheseworking

groups.InFY24,wedisbandedour

SustainabilityCommunicationsWorking

Group,tostreamlineinteractionsbetween

oursustainabilityandmarketingteams.

InFY24,keyareasoffocusforthe

Committeeincludedourrecentlyapproved

SBTs,thelaunchofourreclaimedleather

product,thego-to-marketprocessfor

sustainablematerials,thelaunchofour

authorisedrepairandresaleinitiatives,the

outcomesofourhumanrightsduediligence

reviewandsustainabilitymarketing.

Inaddition,our:

• RecommerceSteeringCommitteeis

responsibleforadvancingrepairand

resaleopportunitiesandincorporating

recommerceintoourstrategyand

financialplanning.ItischairedbyourCFO

andmeetsapproximatelyeverysixweeks

• TCFDSteeringCommitteeisresponsible

forourreportingagainsttheframework’s

requirements,aswellastheunderlying

analysisneededtoinformthesame

includingtherisksandopportunities

posedtoourbusinessbyclimatechange.

Itincludesrepresentativesfromour

Finance,SustainabilityandRiskteams

Policies

OurESGpolicyrequirementsarereviewed

regularlybyourLegal,Complianceand

Sustainabilityteams.Policiesaredeveloped

usinginternationalstandardsandindustry

bestpractice.Ourinternalauditteam

providesperiodic,targetedreviewsofour

relatedpoliciesandprocedurestothe

AuditandRiskCommittee.

KeyESGpoliciesinclude:

• TheDOCtrine,ourbusinesscodeof

conduct,whichincludesafocuson:

– Anti-Bribery,CorruptionandFraud

– Anti-Bullying,Discriminationand

Harassment

– CompetitionLaw/Anti-Trust

– ConfidentialInformation

– ConflictofInterest

– DataProtection

– HealthandSafety

– HumanRightsandEthicalTrade

• AnimalDerivedMaterialsPolicy

• Anti-SlaveryandHumanTraffickingPolicy

• GlobalSanctionsCompliancePolicy

• MIEEnvironmentalPolicy

• ‘SpeakUp’WhistleblowingPolicy

• GlobalHealthandSafetyPolicy

• ThirdPartyDueDiligencePolicy

Theseareinadditiontooursupplierpolicies

(page64).

FOR FURTHER INFORMATION

VISITDRMARTENSPLC.COM

Risk management

WeannuallyassessrisksrelatedtoESG

issuesaspartofouroverallenterpriserisk

managementapproach(page38).

Compliance and training

Weuseourglobal,onlinecompliance

trainingplatformtodeliverpoliciesand

trainingmaterials(translatedinrelevant

languages)acrossallofourregionson

aconsistentbasis.Allemployeesare

offeredtrainingonthefollowingmodules:

• AcceptableUsage

• Cybersecurity

• DataProtectionandPrivacy

• Diversity,Equity&Inclusion

• ForcedLabourandEthicalTrade

• FinancialCrime(includingAnti-Bribery

andCorruption)

• SpeakingAsOne(speakingonbehalf

ofthebusiness)

• HealthandSafety

• SustainableDesign

Theplatformprovidestargeted,

supplementarytrainingand

communicationswhereneeded.

SUSTAINABILITY COMMITTEE

RECOMMERCE STEERING

COMMITTEE

TCFD

STEERING COMMITTEE

SUSTAINABILITY WORKING GROUPS

OPERATIONS

MATERIALS &

PACKAGING

LIFECYCLE

CLIMATE

Climate-related risks and opportunities are

raised in each Sustainability Working Group

DR. MARTENS PLC BOARD

STRATEGIC REPORT

73DR. MARTENS PLC ANNUAL REPORT 2024

SASB REFERENCE TABLE

TheSustainabilityAccountingStandardsBoard(SASB)Foundationisanot-for-profit,independentstandards-settingorganisation

thataimstoestablishandmaintainindustry-specificstandards.ThistableidentifiesthestandardsdeemedrelevanttotheApparel,

Accessories&Footwearindustry,asdefinedbySASB’sSustainableIndustryClassificationSystem(SICS).Itreferencesthelocationin

ourAnnualReportthatrespondstoeachmetric.Therearesomeareaswhereinformationhasnotbeencaptured,howeverweareworking

toimproveourdatasystemsinordertocollectandmonitorallrequireddata.

Metric Category Unit of Measure Code Response

Number of (1) Tier 1 suppliers and (2)

suppliers beyond Tier 1.

Quantitative Number CG-AA-000.A (1) We have 27 Tier 1 supplier factories (13 Footwear, 8 Accessories,

6 Outsole).

(2) For AW24 production we have 96 Tier 2 suppliers.

Our supplier numbers fluctuate season to season. More information can

be found on page 64.

MANAGEMENT OF CHEMICALS IN PRODUCTS

Discussion of processes to maintain

compliance with restricted substances

regulations.

Discussion and

analysis

N/A CG-AA-250a.1 See ‘Chemicals’ and ‘Water’ sections within ‘Our supply chain’ on page 55.

Discussion of processes to assess and

manage risks and/or hazards associated

with chemicals in products.

Discussion and

analysis

N/A CG-AA-250a.2 See ‘Chemicals’ and ‘Water’ sections within ‘Our supply chain’ on page 55.

ENVIRONMENTAL IMPACTS IN THE SUPPLY CHAIN

Percentage of (1) Tier 1 supplier facilities

and (2) supplier facilities beyond Tier 1 in

compliance with wastewater discharge

permits and/or contractual agreement.

Quantitative Percentage (%) CG-AA-430a.1 (1) 100% of Tier 1 suppliers sign our Environmental Standards

agreement, which includes our wastewater management and effluent

treatment requirements.

(2) 100% of our leather suppliers are LWG certified. Those that are

certified and conduct wet processing comply with the LWG protocol,

which is aligned to ZDHC and Dr. Martens wastewater requirements

as outlined in our Environmental Standard.

Percentage of (1) Tier 1 supplier facilities

and (2) supplier facilities beyond Tier 1

that have completed the Sustainable

Apparel Coalition’s Higg Facility

Environmental Module (Higg FEM)

assessment or an equivalent

environmental data assessment.

Quantitative Percentage (%) CG-AA-430a.2 (1) In FY24 our Tier 1 Made In England manufacturing sites maintained

ISO 14001 certification. 30% of our Tier 1 footwear supplier factories have

declared they have completed the Higg FEM assessment. 15% have

declared they have ISO 14001 (including our Made In England factory).

(2) 100% of the tanneries we source from are certified by the Leather

Working Group, which is the leading environmental certification for

tanneries globally. Environmental certification is not currently being

monitored across all of our Tier 2 suppliers, but we will endeavour to

do so in the future.

LABOUR CONDITIONS IN THE SUPPLY CHAIN

Percentage of (1) Tier 1 supplier facilities,

(2) supplier facilities beyond Tier 1 that

have been audited to a labour code of

conduct and (3) percentage of total audits

conducted by a third-party auditor.

Quantitative Percentage (%) CG-AA-430b.1 (1) 100% of our Tier 1 supplier factories have been audited to the

Workplace Conditions Assessment (WCA) on-site audit protocol and

surpassed our required CSR criteria.

(2) 100% of the tanneries we source leather from are LWG certified, for

which a recognised social audit is now a requirement. Across our Key

Tier 2 supplier base, over 90% have been audited to a labour code of

conduct (either WCA assessment or other accepted social audit).

(3) 100% of our Tier 1 CSR audits were conducted by a third-party auditor.

Priority non-conformance rate and

associated corrective action rate for

suppliers’ labour code of conduct audits.

Quantitative Rate CG-AA-430b.2 Supplier violations found during audits are categorised by four levels

of severity: zero-tolerance violations, major, minor and moderate.

Zero-tolerance violations are considered the highest severity of

non-conformance. During FY24, 0% of audit items were classified as

zero-tolerance violations. For more information on our CSR monitoring

programme see Responsibly managing our supply chain (pages 64 and 65).

Description of the greatest (1) labour

and (2) environmental, health and safety

risks in the supply chain.

Discussion and

analysis

N/A CG-AA-430b.3 (1) For more information see Responsibly managing our supply chain

(pages 64 and 65) or our latest Modern Slavery Statement.

(2) Our priority climate-related risks can be found in our TCFD disclosure

on page 75.

RAW MATERIALS SOURCING

(1) List of priority raw materials; for each

priority raw material: (2) environmental

and/or social factor(s) most likely to

threaten sourcing, (3) discussion on

business risks and/or opportunities

associated with environmental and/or

social factors, and (4) management

strategy for addressing business risks

and opportunities.

Discussion and

analysis

N/A CG-AA440a.3 (1) Leather, PVC.

(2, 3, 4) For more information see Materials and Packaging (pages 57

to 60), TCFD Report (page 75) and Risk management (page 38).

(1) Amount of priority raw materials

purchased, by material, and (2) amount

of each priority raw material that is

certified to a third-party environmental

and/or social standard, by standard.

Quantitative Percentage (%) by

weight

G-AA440a.4 In AW24 100% of our upper leather came from LWG certified tanneries.

In FY24, we began the implementation of a new system which, once fully

operational, will deliver enhanced visibility across our product lifecycle

and enable reporting in the required unit of measure against this metric.

74 DR. MARTENS PLC ANNUAL REPORT 2024

SUSTAINABILITY CONTINUED

TASK FORCE ON CLIMATE-

RELATED FINANCIAL

DISCLOSURES

Compliance Statement

Wehavesetoutbelowourclimate-relatedfinancialdisclosuresasrequiredbytheCompaniesAct2006.TheseareinlinewiththeUK

ListingRules(LR9.8.6R).ThisalsoconstitutesourresponsetotherecommendationsandrecommendeddisclosuresoftheTaskForce

onClimate-relatedFinancialDisclosures(TCFD).WehaveconsideredtheTCFDAnnexandapplieditwhererelevant.

TCFD Consistency Index

ThisindextablesignpoststowheredisclosuresareincludedintheFY24AnnualReportandAccounts.Ourdisclosuresareconsistent

withtheTCFD’sfourrecommendationsand10ofthe11recommendeddisclosures.Webelieveourdisclosureispartiallyconsistentwith

recommendation2b.Thisyearwehaveconductedfinancialmodellingtounderstandthepotentialimpactofthreeofourpriorityclimate

risksandopportunities(CROs),howeverfurthermodellingisrequiredtoassessallofourpriorityCROsatthislevel.

TCFD INDEX TABLE

TCFD

PILLAR

RECOMMENDED

DISCLOSURE

CONSISTENCY

LEVEL

PAGE

REFERENCE COMPANIES ACT 2006 414CB

1. Governance

a. Describe the board’s oversight of

climate-related risks and opportunities.

Page 76 a. A description of the company’s governance

arrangements in relation to assessing and

managing climate-related risks and opportunities.

b. Describe management’s role in assessing

and managing climate-related risks and

opportunities.

Pages 76 and 77

2. Strategy

a. Describe the climate-related risks and

opportunities the organisation has identified

over the short, medium, and long term.

Pages 77 and 78 d. A description of:

i. the principal climate-related risks and

opportunities arising in connection with

the company’s operations, and

ii. the time periods by reference to which those

risks and opportunities are assessed.

b. Describe the impact of climate-related

risks and opportunities on the

organisation’s businesses, strategy,

and financial planning.

Pages 78 to 81 e. A description of the actual and potential

impacts of the principal climate-related risks

and opportunities on the company’s business

model and strategy.

c. Describe the resilience of the organisation’s

strategy, taking into consideration different

climate-related scenarios, including a 2°C or

lower scenario.

Pages 81 and 82 f. An analysis of the resilience of the company’s

business model and strategy, taking into

consideration different climate-related scenarios.

3. Risk

management

a. Describe the organisation’s processes

for identifying and assessing climate-

related risks.

Page 82 b. A description of how the company identifies,

assesses, and manages climate-related risks

and opportunities.

b. Describe the organisation’s processes

for managing climate-related risks.

Page 82

c. Describe how processes for identifying,

assessing, and managing climate-related

risks are integrated into the organisation’s

overall risk management.

Pages 82 and 83 c. A description of how processes for identifying,

assessing, and managing climate-related risks

are integrated into the company’s overall risk

management process.

4. Metrics

and targets

a. Disclose the metrics used by the

organisation to assess climate-related

risks and opportunities in line with its

strategy and risk management process.

Page 83 h. A description of the key performance indicators

used to assess progress against targets used

to manage climate-related risks and realise

climate-related opportunities and of the

calculations on which those key performance

indicators are based.

b. Disclose scope 1, scope 2 and, if

appropriate, scope 3 greenhouse gas

(GHG) emissions and the related risks.

Page 83

c. Describe the targets used by the

organisation to manage climate-related

risks and opportunities and performance

against targets.

Page 83 g. A description of the targets used by the

company to manage climate-related risks

and to realise climate-related opportunities

and of performance against those targets.

Key:

Consistent Partially consistent

STRATEGIC REPORT

75DR. MARTENS PLC ANNUAL REPORT 2024

OUR TCFD DISCLOSURES

1. GOVERNANCE

1a. Board oversight

TheBoardisresponsiblefortheoversight

ofsustainabilityandESGtopicsacross

thebusiness,includingclimate-related

risksandopportunities.Updatesrelating

tosustainabilityandclimaterisksand

opportunitiesarediscussedatBoard

meetingsatleastannually.Thisallowsthe

Boardtoprovidefeedbackandsteertothe

sustainabilitystrategy,prioritiesandtargets

(includingourNet-Zerotarget).TheBoard

iskeptinformedofrelevantregulatory

developments,includingthoserelatingto

climate-relateddisclosures,through

quarterly‘horizonscanning’papers.The

Boardusesthisinformationtohelpguideits

decision-making,includingstrategic,risk

managementandbusinessplanningrelated

decisions.Climate-relatedmatters(including

repair,resaleandinnovativematerialtrials)

werediscussedandincludedin50%ofthe

CEOupdatesatscheduledBoardmeetings

duringFY24.

SUMMARY OVERVIEW OF PROGRESS IN FY24

InourFY23AnnualReport,werecognisedthatweneededtoundertakefurther

worktodemonstratehowweareassessingandintegratingclimaterisksinto

businessstrategyandfinancialplanning.Tostrengthenourapproach,wehave

donethefollowing:

Governance

ProvideddetailedupdatestotheBoardviatherelevantBoardCommitteesand

formalisedtheresponsibilitiesoftheSustainabilityCommitteeandAuditandRisk

Committeeinrelationtoclimate-relatedmatters.

Strategy

Engagedwithstakeholdersinthebusinesstoreviewourexistingpriorityclimate-

relatedrisksandopportunities(CROs)andevolvedourapproachtoassessand

adjusttheimpactofCROs.

Risk management

DevelopedourapproachtoconductfinancialimpactmodellingofthreeCROsto

furtherunderstandtheimpacttothebusiness.

Metrics and targets

OurNet-Zeroscience-basedtargetswerevalidatedbytheScienceBasedTargets

initiative(SBTi).Weusedathird-partyemissionsmanagementtooltomeasure

ourcarbonfootprintforthefirsttime.ClimateandESG-relatedtargetswere

includedintheFY24ExecutiveBonusScheme.

Othersustainabilityandclimate-related

matterswerealsoregularlyhighlightedin

BoardmeetingsthroughCEOupdates.

Regularsustainabilityandclimate-related

updatesarealsoprovidedattheBoard-

levelandAuditandRiskCommittee.

ThechairoftheAuditandRiskCommittee

meetsregularlywiththeDirectorof

SustainabilityforupdatesonESGmatters.

Climate-relatedtargetsformedpartofthe

ongoingperformancemeasuresforthe

ExecutiveBonusSchemeduringFY24:

page127.

1b. Management’s role

TheDr.Martenssustainabilitystrategy,

Planet,Product,People,isunderpinnedby

acleargovernanceframework(page73)

whichcoversstrategicoversightand

responsibilities,aswellasinformation

flowsbetweengroupsandtotheBoard.

Sustainability Committee:The

SustainabilityCommitteeischairedby

theCEO.TheCommitteehasoverall

managementresponsibilityforclimate-

relatedtopicsandreportsregularlytothe

Board.KeyoutputsfortheSustainability

CommitteeduringFY24includedreview,

discussionandapprovaloflaunchplansfor

multiplesustainablematerials,resaleand

repairprojectsandupdatesagainstthe

verifiedSBTs,amongotherkeydecisions.

Sustainability Working Groups:The

Operations,Lifecycle,Materialsand

Packagingworkinggroupsreportintothe

SustainabilityCommitteeeverytwomonths

toprovideprogressupdatesagainsttheir

commitmentsandmetrics.Climatefalls

withinthescopeofeachoftheworking

groups,soclimate-relatedissuesareraised

attheworkinggroupswhenrelevant.

Workinggroupsareledbymanagement-

levelsubjectmatterexpertsfromacross

thebusiness,withguidanceandtechnical

adviceprovidedbytheSustainabilityteam.

TCFD Steering Committee:TheTCFD

SteeringCommitteeiscomprisedofthe

Finance,Sustainability,InternalAudit&

Risk,andSupplyChainteams,andworks

collaborativelytoidentify,monitorand

manageclimate-relatedrisksand

opportunities.TheTCFDSteering

CommitteeischairedbytheCFO,whohas

ultimateaccountabilityforclimate-related

issues.Itprovidesupdatesintothe

SustainabilityCommittee,whichischaired

bytheCEO.KeyoutputsforFY24included

afurtherassessmentofaselectionof

climaterisksandopportunities,

developmentoftheTCFDdisclosureand

preparationsfortheclimatetransitionplan.

Recommerce Steering Committee:

Recommerceisakeyclimate-related

opportunityforDr.Martens.TheRecommerce

SteeringCommitteemeetsquarterlyand

ischairedbytheCFO.Itisattendedby

membersoftheFinance,GlobalSupply

Chain,Sustainability,Legal,Technology,

Digital,MarketingandrelevantRegional

teams.ItworkstoadvanceDr.Martens’repair

andReWairopportunitiesgloballyandto

incorporaterecommerceintotheGroup’s

strategicdirectionandfinancialplanning.Key

discussionpointsandoutputsforFY24

includedsteeronthelaunchofbothReWair

intheUSAandauthorisedrepairintheUK.

76 DR. MARTENS PLC ANNUAL REPORT 2024

OUR TCFD DISCLOSURES CONTINUED

Sustainability team: Dr.Martenshasa

teamofinternalsustainabilityexpertswho

havetheskillsandknowledgetoadvise

theCompanyonsustainabilitymatters.

DuringFY24,theDirectorofSustainability

reporteddirectlyintotheChiefPeopleand

SustainabilityOfficer(CPSO).Going

forwards,theSustainabilityteamwillreport

intothenewlycreatedroleofChiefBrand

Officerassustainabilitybecomesevermore

importanttoourbrandandproduct.The

DirectorofSustainabilityisresponsiblefor

coordinatingthebusiness’sapproachto

managingsustainabilityandclimate-related

matters.TheyalsosupporttheInternalAudit

andRiskandFinanceteamstointegrate

climate-relatedfinancialinformationinto

financialandriskbusinessprocesseswhere

appropriate.TheSustainabilityandClimate

ImpactManagerisresponsibleforthe

day-to-daymanagementofclimate-related

risksandopportunitiesacrossthebusiness.

Theyhavetheresponsibilityforattendingall

SustainabilityCommitteemeetingsand

workinggroupstoensureclimaterisksand

opportunitiesareconsideredandtoprovide

specialistexpertise.Outsideofthe

Sustainabilityteam,membersoftheFinance

teamparticipateinexternaltrainingcourses,

includingTheInstituteofChartered

AccountantsinEnglandandWales

SustainabilityCertificateandUniversityof

CambridgeSustainableFinancecourse,

toensuretheykeepuptodatewithrelevant

climate-relatedfinancialtopics.

Employee engagement: Dr. Martens

employeesareeducatedonclimate-related

topicsthroughinternalengagement

andstrategiccommunications.InJanuary

2024,aninternalclimate-related

engagementeventwasorganisedbythe

Sustainabilityteamandsupportedby

multiplefunctionsincludingGlobalSupply

ChainandInternalCommunications.Its

purposewastoincreaseawarenessof

ourNet-Zerocommitmentandspecific

emissionsreductioninitiatives,suchas

materialinnovationandrecommerce.

Theeventwasattendedbyalmost700

ofourpeopleglobally.

Moredetailonoursustainabilitygovernance

structurecanbefoundonpage73.

2. STRATEGY

2a. Climate-related risks and

opportunities identified

Asdetailedinpreviousdisclosures,we

haveeightthematiccategoriesofpriority

CROswhichwereidentifiedusingthe

assessmentprocessconductedinFY22

withtheCarbonTrustwhichisoutlinedin

ourFY22andFY23TCFDdisclosures.

WeusetheNetworkforGreeningthe

FinancialSystem(NGFS)climate

scenariostotestourbusinessmodel

andstrategy.Bychoosingthesethree

scenarios,wesetouttoidentifyand

understandtherisksandopportunitiesthat

couldariseforourbusiness,supplychain

andthewidereconomythatweoperatein,

toensurethatweanticipateandprepare

fortheseoutcomes.TheNGFSclimate

scenariosareasfollows:

ORDERLY TRANSITION SCENARIO (1.5°C)

TheOrderlyTransitionscenarioassumes

climatepoliciesareintroducedearlyand

becomegraduallymorestringent.Both

physicalandtransitionrisksarerelatively

subdued.

DISORDERLY TRANSITION SCENARIO

(1.5°C-2°C)

TheDisorderlyTransitionscenarioexplores

highertransitionriskduetopoliciesbeing

delayedordivergentacrosscountries

andsectors.Itassumesthatnewclimate

policiesarenotintroduceduntil2030,at

whichpointverystrongpoliciesareneeded

tolimitwarmingtobelow2°C.Physical

risksarestillrelativelysubdueddueto

globalwarmingbeinglimitedtobelow2°C.

HOT HOUSE WORLD (4°C+)

TheHotHouseWorldscenarioassumes

thatglobaleffortsarenotsufficienttobe

abletohaltsignificantglobalwarming.

Transitionrisksarekeptrelativelylowas

nonewclimatepolicyisintroducedor

implemented.Criticaltemperaturesare

exceededasaresult,leadingtosevere

physicalrisks.

Wecontinuetousethetimehorizonsused

inpreviousdisclosures.

Theyare:

• Short-term:Lessthan5years

• Medium-term:5-10years

• Long-term:10+years

Oureightthematiccategoriesofpriority

CROsareasfollows:

• Twophysicalrisksthatcouldimpactthe

businessinaHotHouseWorldscenario

(4°Cemissionsscenario),wherethe

businessanditsvaluechainareexposed

tochronicchangesinlocalclimatesand

anincreaseinthefrequencyandseverity

ofextremeweatherevents.

• Fourtransitionalrisksandtwotransitional

opportunitiesthatcouldimpactthe

businessinanOrderlyTransitionscenario

(1.5°C)orDisorderlyTransitionscenario

(1.5°C-2°C),wherethebusinessis

operatinginarapidtransitiontoachieve

Net-Zeroby2050.Assumptionsinclude

progressivegovernmentpolicies,market

pressuresfromcompetitors,reputational

impactsfrominvestorsandcustomers,

andthetechnologygapbetweenwhatis

availableandwhatisneededtoachieve

Net-Zeroby2050.

DuringFY24,theTCFDSteeringCommittee

undertookfurtherworktostrengthenour

approachwhichincludedformalisingthe

responsibilitieswithintheTCFDSteering

Committee.Anotherkeyfocuswastobetter

understandthefinancialimpactofourpriority

climate-relatedrisksandopportunities

andtoengagetherelevantteamsinour

assessmentofthese.Theaimwastoassess

thepotentialimpacttothebusinessunder

differentclimatescenariosinordertoassess

Dr.Martensclimateresilience.

UsingthepriorityCROsidentifiedinprevious

years,weassessedtwoclimate-relatedrisks

andoneopportunity.WeappliedtheNGFS

climatescenariostothefollowingpriority

CROs:riverineflooding,carbontaxationand

repairandresale.

Wehavespecifiedanestimatedfinancial

impactrangeagainsttheseCROswhich

alignswithourriskmanagementprocedure.

Theimpactcategoriesoutlineapotential

reductioninoperatingprofitforrisksand

apotentialincreaseinoperatingprofitfor

opportunities,takingintoconsideration

mitigationmeasuresimplementedby

Dr.Martens.Thecasestudiescanbe

foundonpages81and82.

TherisksandopportunitiesinourTCFD

disclosureonlyreflectourclimate-related

risksandopportunities.Foranoverview

ofallofDr.Martensprincipalrisks,please

refertopages39to43.

STRATEGIC REPORT

77DR. MARTENS PLC ANNUAL REPORT 2024

Inthetablebelow,weoutlineourpriorityCROsalongwiththeirperceivedsensitivitytoeachofthelistedscenarios.

How to read the table:

Inthecaseofriverineflooding,itisanticipatedthattheimpactwillmaterialiseintheshorttomediumterm.InanOrderlyTransitionscenario

whereconsistentpoliciesandmitigationshavebeenimplementedearly-onandhavecontainedtheworsteffectsofclimatechange,the

impactisrelativelylow.TheimpactandlikelihoodofriverinefloodingishigherunderaDisorderlyTransitionscenario,wheretherehasbeen

adelayinimplementingthepoliciesneededtocontainglobalwarmingduetothedisorganisednatureofthemitigationmeasures.InaHot

HouseWorldscenario,insufficientmeasurestocontaintheeffectsofclimatechangehavebeenimplementedandasaresult,theimpacts

andlikelihoodofriverinefloodingarethemostsevereandmostlikely.

Time horizon Likelihood: Scenario sensitivity

Climate-related risks Category Short Medium Long Orderly Disorderly

Hot

House

PHYSICAL

RISKS

PR1.Riverineflooding Acute

PR2.Changesin

temperature

Chronic

TRANSITION

RISKS

TR1.Carbontaxation Policy

TR2.Production

standards

Policy

TR3.Increasedpricesof

inputmaterials,

processes and

services

Market

TR4.Land-use&

agricultural

practices

Market

Climate-related opportunities

TRANSITION

OPPORTUNITIES

TO1.Repairandresale Market

TO2.Alternative

materials

Market

Anticipatedonsetof

riskoropportunity

Estimatedfullimpact

ofriskandopportunity

Highlikelihood

Lowlikelihood

2b. Impact of climate-related risks and opportunities

Recognisingtheimpactofclimatechangeacrosstheshort,mediumandlongterm,weconsidertheactualandpotentialfinancialimpacts

onourbusinessmodel,ourstrategyandourfinancialplanning.Wherepossible,welooktomitigatecostpressuresthroughprocurement

andsourcingefficiencies.Givenourbudgetsandstrategicfinancialplansareunderpinnedbygoingconcernandviability,weassessed

thepotentialbusinessandfinancialimpactofourpriorityCROsandalignedwiththebusiness’sinternalriskmanagementprocessas

summarisedin3a.InourFY23TCFDdisclosureweprovidedanindicativegrossimpactforeachCRO,whichwasabroadestimationand

didnotincludeafinancialrange.Sincethen,wehavedevelopedourapproachandconductedmodellingtoquantifyanestimatedfinancial

impactagainstthreeofourpriorityCROs,indicatedinthetableonthenextpage.Theimpactcategoriesoutlineapotentialreductionin

operatingprofitforrisksandapotentialincreaseinoperatingprofitforopportunities,takingintoconsiderationmitigationmeasures.Going

forward,wewillaimtoquantifythefinancialimpactoftheremainingCROsusingourupdatedmethodology.

78 DR. MARTENS PLC ANNUAL REPORT 2024

OUR TCFD DISCLOSURES CONTINUED

Inthetablebelow,wheretheestimatedfinancialimpactcategorystates‘furthermodellingrequired’,theindicativegrossimpactfrom

ourFY23disclosurestillapplies.Astheindicativegrossimpactdoesnotalignwiththeupdatedimpactcategoriesusedinthisdisclosure,

furthermodellingisrequiredtoaligntheimpactestimationusingourupdatedapproach.

ESTIMATED FINANCIAL IMPACT CATEGORY

Over£10m:Severe Between£5m-£10m:Serious Between£1m-£5m:Moderate Lessthan£1m:Low

RISK ESTIMATED FINANCIAL

IMPACT CATEGORY

RISK DESCRIPTION HOW WE MANAGE AND

MITIGATE THE RISK

METRICS AND

TARGETS

Physical Risk 1.

Acute – riverine

flooding

Timeframe:

S M L

Anincreaseintheseverityand

frequencyofextremeweatherevents

coulddisrupttheoperationofour

valuechainandnegativelyimpact

ourthird-partysuppliers’production

capabilities,whichcouldsignificantly

impactourbusiness.Wemodelleda

significantweatherevent–riverine

floodinginVietnam–inaHotHouse

Worldscenario(4°C)tofurther

understandthepotentialimpact.

Seethecorrespondingcasestudy

insection2cforkeyassumptions

and more.

Theimpactoffloodingonourvalue

chainismitigatedthroughthe

diversificationofsourcingcountriesand

Tier1suppliers,countersourcingofhigh

volumenewproducts,andspreading

newproductdevelopmentsacross

factories.Seethecorrespondingcase

studyinsection2cforfurtherdetail.

Tomonitortheriskof

riverineflooding,we

engagewithsuppliers

throughastandardised

informationrequest,

whichmonitors

individualsuppliers’

currentmitigation

measures

Physical Risk 2.

Chronic changes

in temperature

Timeframe:

M L

Furthermodelling

required

Leatherisourmostcommonlyused

uppermaterial.Someofoursourcing

regionsmaybesubjecttoanincrease

indroughtsandheatwavesinaHot

HouseWorldscenario(4°C),which

couldresultinreducedavailability

ofrawmaterials.

Tobeabletounderstandourexposure

totheriskofchronicchangesin

temperaturetooursourcingregions,

werequireadeeperunderstandingof

wherethismayimpactDr.Martens

sourcingthemost.

Wearemakinggoodprogresson

leathertraceability,with89%ofour

upperleatherbeingtraceablebackto

theabattoirforAW23.Ourlonger-term

aimistoachievetraceabilitybacktothe

farmtobetterunderstandtheimpact

ofphysicalclimaterisksonourvalue

chain.Seepages57and58ofour

SustainabilityReportformoredetails

onleathertraceabilitycommitments

andourprogress.

Wecanalsoreduceourexposureto

thisriskbydiversifyingourmaterials,

whichispresentedasanopportunity

withinTO2.Byreducingourrelianceon

conventionalleathersourcedfromhigh

riskareas,wereducethepotential

impactofthisrisk.

Target:100%leather

traceabilityforall

countriesby2024

Status:89%

Formoreseepage57

Transition Risk 1.

Carbon taxation

Timeframe:

M L

Introductionofcarbontaxesand/or

carbontradingmarketscouldincrease

inputcostsacrossthevaluechain.

Wemodelledthetwoextreme

emissionspathwaysforDr.Martens

(achievingNet-Zeroby2040resulting

inlowemissions,andcontinuingBAU

withnointerventionsresultinginhigh

emissions)againstboththeOrderly

TransitionandHotHouseWorld

scenariostobetterunderstandthe

rangeofpotentialimpacts.

Seethecorrespondingcasestudyin

section2cforkeyassumptionsandmore.

Thereisadirectcorrelationbetween

thelevelofemissionsandexposureto

theriskofcarbontaxation–high

emissionsmeanahighlevelof

exposuretocarbontaxation.Therefore

thebestmitigationforthisriskisto

reduceouremissionsinlinewithour

science-basedtargets,whichwere

validatedbytheSBTiinOctober2023.

Seethecorrespondingcasestudyin

section2cforfurtherdetailonhowwe

modelledthisrisk,andpage52inthe

SustainabilityReportforfurtherdetail

onsomeofthewaysweaimto

decarboniseDr.Martens.

Target:Dr.Martens

commitstoNet-Zero

GHGemissions

acrossthevaluechain

byFY40

Forourfullnearand

long-termSBTs,see

page51

STRATEGIC REPORT

79DR. MARTENS PLC ANNUAL REPORT 2024

RISK ESTIMATED FINANCIAL

IMPACT CATEGORY

RISK DESCRIPTION HOW WE MANAGE AND

MITIGATE THE RISK

METRICS AND

TARGETS

Transition Risk 2.

Production

standards

Timeframe:

S M L

Furthermodelling

required

Decarbonisationstandardscouldbe

imposeduponkeysuppliermarkets

suchascattle-farming,PVC

productionandpackaging,which

couldresultinanincreasedpriceof

inputmaterials(TR3).However,

productionstandardsalsoofferan

opportunityforDr.Martens.Resilience

acrossthevaluechaincanbe

strengthenedwhichcouldresultin

positiveoperationalefficiency

opportunities.Theoverallimpact

dependsupongovernmentpolicyand

alternativetechnologydevelopment.

Byfindingandusingalternativematerials

whicharelesscarbonintensivethan

thosethatwecurrentlyuse,wereduce

ourexposuretodecarbonisation

standardsbeingimposedtoa

detrimentaldegree(seeTO2).These

couldincludebio-basedalternatives

toPVCandlower-impactleather.

Oursupplierswithenvironmental

certificationsstandardsoran

environmentalmanagementsystem

inplacearealreadytakingstepsto

managetheircarbonimpactthrough

energy,wasteandwatermanagement,

whichreducestheriskofnew

decarbonisationstandardsderailing

theirproduction.

Target:100%upper

leatherfromLWGby

2023(tobemaintained

goingforward)

Status:100%(forthe

AW24season)

Target:Sustainable

veganuppermaterial

by2028and

sustainablealternative

tooutsolesby2035

Status:Materialsin

development.See

pages58and59

Target:Environmental

certificationstandardto

Tier1suppliersby2025

Status:46%ofour

Tier1footwear

factories

Transition Risk 3.

Increased prices

of input materials,

processes and

services

Timeframe:

M L

Furthermodelling

required

Thedecarbonisationofmaterialsand

servicescouldrequirehigherlevels

ofinvestmentwithinthesupplychain

whichcouldbepasseddownstream

toDr.Martens.Thiscouldmaterialise

asapriceincreaseforfossilfuel-

generatedelectricityfromthegridand

inputsforvirginPVC.

ProjectedgridpricesandPVCdemand

arebasedonIEAWorldEnergy

OutlookandEnergyTechnology

Perspectivesscenarios,andheavy

fueloilpricesbasedonGCAM5.3IAM

outputs.ThepriceofPVCisassumed

tohaveaunitarypriceelasticitywith

respecttodemand.Fortheimpactof

coalandgasprices,thegridmixis

assumedtostayconstantwithno

phaseoutoffossilfuelassets.

Wearecontinuingtotestandtrial

alternativematerials,includinga

bio-basedPVCoutsolewhichmeetsour

durabilityandqualitystandardsaswe

progresstowardsourtargettodevelopa

sustainablealternativeoutsoleby2035.

Seepage59ofourSustainabilityReport

formoredetailsonexploringbio-based

alternativesandourprogress.

Over90%oftheelectricitysourcedby

ourownedandoperatedsitesintheUK

andEMEAwasfromrenewable

sourcesduringFY24,whichmitigates

theriskofincreasinggridprices.We

havealsoidentifiedsolutionstohelpus

sourcerenewableelectricityacrossall

ourownedandoperatedsitesglobally

bytheendof2025,whichweareaiming

toimplementoverthecourseofFY25.

Target:Sustainable

alternativetooutsoles

by2035

Status:Materialsin

development.See

page59

Target:100%

renewableelectricity

acrossallownedand

operatedsitesby2025

Status:Global=

46.3%oftotalkWh

consumption(UK&

EMEA93.5%)

Transition Risk 4.

Land-use &

agricultural

practices

Timeframe:

M L

Furthermodelling

required

Procurementcostscouldincreaseas

aresultofglobalemissionreduction

efforts,duetolessintensivepractices

andhigherdemandforlowerimpact

materials.Thiswouldalsonegatively

impacttheriskareaTR3duetothe

potentialcostuplift.Theimpacton

Dr.Martensischallengingtomodel

giventherelativelyfar-removed

upstreampositionandthesystemic

natureoftheserisks.

Itisassumedthatpricesofrawhides

willincreaseproportionatelywiththe

decreasedavailabilityofland.Itisnot

assumedthatDr.Martenssuppliers

couldprocurehidesfromother

locationsthatwouldbelessaffected

resultinginalowerpricedifference.

Wearelookingtodiversifyourmaterial

procurementintoalternativematerials

aspartofourNet-Zeroambition,which

weseeasakeymitigationmeasurefor

thisrisk.Seethe‘Alternativematerials’

opportunitybelow(TO2)andpages58

and59ofourSustainabilityReportfor

moredetailsonhowweareexploring

leatheralternatives.

Target:100%of

footwearmadefrom

sustainablematerials

by2040

Status:Seepages58

and59formoredetails

onourprogress,

includingthelaunchof

ourfirstproductmade

fromreclaimedleather

80 DR. MARTENS PLC ANNUAL REPORT 2024

OUR TCFD DISCLOSURES CONTINUED

2c. Resilience of the business

strategy

TheOrderlyTransition,DisorderlyTransition

andHotHouseWorldscenarioswere

appliedacrossthreeofourpriorityCROs.

Theaimwastounderstandhowthedifferent

scenariosimpactedtheriskoropportunity

inordertobetterunderstandourbusiness’s

climateresilience.Inallthreecases,no

materialimpactonthebusinessmodel

orstrategywasfound.Thefindingsare

presentedinthefollowingcasestudies:

PHYSICAL RISK: RIVERINE FLOODING

(PR1) (Spotlight on riverine flooding in

Ho Chi Minh City, Vietnam)

Extremeweathereventscanhavefar-reaching

consequencesforcompanieswithglobal

supplychainssuchasDr.Martens.Basedon

theCROprioritisationassessmentconducted

inFY22bytheCarbonTrust,riverineflooding

wasidentifiedasbeingoneofthemost

materialphysicalrisksforDr.Martens.

TheTCFDSteeringCommitteeoptedto

explorethepotentialimpactofariverine

floodingeventinHoChiMinhCity(HCM)

duetotheregion’shigh-riskscoreonWorld

ResourcesInstitute(WRI)Aqueducttool

andthelocation’simportancetooursourcing

strategy.SeveralofourTier1factoriesand

materialsuppliers,includingtanneries,are

locatedinHCM.Theaimwasthatin

choosingonegeographicalregiontobegin

theprocessofquantifyingpotentialfinancial

impact,wecouldrefinethatprocessand

quantifyotherphysicalrisksinfuture.

Afloodingscenarioworkshopwas

conductedinNovember2023whichwas

attendedbymembersoftheTCFDSteering

Committeeandrepresentativesfromthe

GlobalSupplyChainteam.Followingthe

workshop,wethenengagedwithTier1and

KeyTier2suppliersintheregiontoascertain

anyexistingmitigationmeasurestheymight

haveinplace,andtobetterunderstandthe

timeitwouldtakeforthefactoriestogetback

tofullproductionshouldafloodoccur.This

wasmodelledundertheassumptionofaHot

HouseWorldscenario.

Theinformationfromsupplierdiscussions

wasthentranslatedintoanumberwhich

representedcapacityloss.Thiswasthen

modelledasakeycomponentofthe‘Severe

butplausible’scenarioinFY26forthegoing

concernworkfortheaudit.Thisproduceda

potentialfinancialimpactfortheriskofa

riverinefloodingeventinHoChiMinhCity.

Wehaveexistingmitigationmeasures

inplacetoavoidsupplychaindisruption

whichcouldbeappliedintheeventofa

severeweathereventsuchasflooding.

Theseincludeadiverserangeofsourcing

countriesandtheabilitytocounter-source

highvolumeproducts.

Wewillcontinuetoengagewiththeview

tominimisebusinessdisruptionstoboth

Dr.Martensandtooursuppliers.

TRANSITION RISK: CARBON TAXATION

(TR1)

Carbontaxationrisk,frompoliciesand

taxesspurredbytheParisAgreement,

isanareaofpotentialfinancialimpact.

Itcouldvarysubstantiallyamongcompanies

operatinginthesamebusinesssectors.

TheTCFDSteeringCommitteesoughtto

betterunderstandhowitmightpresentas

acost-savingopportunityifDr.Martens

wastodecarboniseasplannedagainstthe

Net-ZerobyFY40target,andthepotential

implicationsoffailingtoachievethe

Net-Zerotargetonthebottomline.

Wemodelledthetwoextremeemissions

pathways–thefirstbeingthatDr.Martens

followtheNet-Zeroplanandachievethe

emissionsreductionsnecessarytobea

Net-ZerobusinessbyFY40,andthe

secondbeingthatnodecarbonisation

measuresaretakenresultinginveryhigh

emissionsasthebusinessgrows.Wethen

overlaidtwoextremecarbontaxation

pathways–thefirstfollowedatransitional

scenario(whichusedtheOrderlyTransition

temperaturescenarios)whereasteepand

consistentincreaseinthetaxpriceofaunit

ofcarbonisneededtoencourageindustry

decarbonisation,andthesecondfolloweda

statedpoliciesscenario(HotHouseWorld)

wherenonewlegislationorcommitments

areimplementedandthetaxpriceofaunit

ofcarbonremainsclosetowhatitisin

presentday.

OPPORTUNITY ESTIMATED FINANCIAL

IMPACT CATEGORY

OPPORTUNITY DESCRIPTION HOW WE MANAGE AND

LEVERAGE THE OPPORTUNITY

METRICS AND

TARGETS

Transition

Opportunity 1.

Repair and resale

Timeframe:

S M L

Repairandresalepresentsa

significantopportunityforDr.Martens

throughthegenerationofrevenueand

profitbasedontheprojectedratesof

growthforthisnewmarket.

Thesemarketsareprojectedtohave

highlevelsofgrowthinallthree

temperaturescenarios(Orderly

Transition,DisorderlyTransition,and

HotHouseWorld).

Forkeyassumptions,seethecase

studyinsection2c.

Buildaprofitablerepairandresale

businessmodelisastrategicproject

underthe‘Direct-to-consumer’pillarof

ourDOCSstrategy.Wesuccessfully

launchedDr.Martensfirstresale

businessmodelintheUKduringFY23,

whichservedasthebasisfortheUSA

ReWairrecommercemodelwhich

launchedinMarch2024.

Seethecorrespondingcasestudyin

section2c.

Target:100%of

productssoldhavea

sustainableend-of-life

optionby2040

Status:Launched

authorisedrepairin

theUK,resaleintheUK

andUSA(‘ReWair’),

RecommerceSteering

Committee,see

section1b)

Transition

Opportunity 2.

Alternative

materials

Timeframe:

M L

Furthermodelling

required

Thealternativeleathermarket

presentsasignificantopportunityfor

Dr.Martensthroughthegenerationof

revenueandprofitbasedonthe

projectedrapidgrowthofthemarket.

Lowerimpactleatherfromregenerative

sourcesandalternativematerialssuch

asreclaimedleathercouldalsohave

theaddedbenefitofreducingthe

emissionsintensityperproduct.

Identifyingandusingalternative

materialscouldalsoreduceexposure

totheLand-use&agricultural

practicesrisk(TR4)listedabove.

ItisassumedthatDr.Martenswillbe

abletocaptureamarketsharesimilarto

theoneheldinregularfootwear,inequal

proportionacrosstheEUandUSA.

Dr.Martensiscommittedtoworking

withsupplierstotrialalternativeand

lowerimpactmaterials.

InMarch2024welaunchedproducts

madefromGenixNappa,amaterial

derivedfromreclaimedleatheroffcuts

destinedforlandfill.Wewillgather

consumerfeedbackandcontinuetowork

withthesuppliertofurtherenhancethe

sustainabilitycredentialsofthematerial.

Wehavealsoadvancedourworkon

bio-basedveganmaterialsand

investigatingregenerativeleather.See

pages58and59ofourSustainability

Reportforfurtherdetail.

Target:Sustainable

veganuppermaterial

by2028

Status:Materialsin

development.See

pages58and59

Target:100%of

footwearmadefrom

sustainablematerials

by2040

Status:Seepages58

and59formoredetails

onourprogress,

includingthelaunchof

ourfirstproductmade

fromreclaimedleather

STRATEGIC REPORT

81DR. MARTENS PLC ANNUAL REPORT 2024

modellingrequired’.Wherethisisstated,

theindicativegrossimpactfromtheFY23

disclosurestillapplies.However,asthis

doesnotalignwiththeupdatedimpact

categories,furthermodellingisrequiredto

alignwithourupdatedmethodology.The

businessimpactofsuchrisksisdiscussed

intheStrategysectiononpages78to82.

3b. Processes for managing

climate-related risks

Wemanageourclimate-relatedrisksinthe

samewayasotherrisksthatthebusiness

faces(refertotheRiskmanagement

sectionofthisreportforfurtherexplanation

onouroverallapproachonpages38to43).

Wehavesummarisedmanagement

controlsandmitigationmeasureswe

haveinplacetomanagethepotentially

significantclimate-relatedrisksinthe

tablesetoutinsection2b.

3c. Integration into overall risk

management

Climatechangeisintegratedinto

Dr.Martensbroaderriskmanagement

framework,andissubjecttothesame

governance,annualreviewprocessand

managementattentionasotherrisks

recordedonourGroupRiskRegister.

Wecurrentlyconsiderclimateriskasan

emergingriskratherthanaseparate

principalrisk.Thisassessmentisbased

upontwomainconsiderations.Firstly,there

remainconsiderablerangesofuncertainty

ontheextentandtimingofwhenclimate

risksmightmaterialise,particularlywithin

thetimeframeofournormalbusiness

Thefindingsshowedthatthebiggest

impactwouldbeifatransitionalscenario

happened,andDr.Martensfailedto

decarbonise.Themodellingshowedthat

reachingtheNet-Zeroby2040targetwas

thebestmitigationtothisriskandwould

alsoprovidesignificantsavingsin

comparisontofailingtoachievethetarget.

TheimpacttoDr.Martenswouldbe

relativelyimmaterialifaHotHouseWorld

scenariooccurred.

ThisworkreiteratedtheneedforDr.Martens

tobeaNet-ZerobusinessbyFY40and

toachieveourscience-basedtargetsand

commitments.OurSBTswereapproved

bytheSBTiin2023andcanbefoundin

theSustainabilityReportonpage51.

TRANSITION OPPORTUNITY: REPAIR

AND RESALE (TO1)

ForDr.Martens,recommerceencompasses

everythingrelatedtoresale,repair,trade-in

andend-of-life.Recommercesupports

progresstowardsourtargetstoofferour

consumersoptionstomaximisetheuseable

lifeoftheirproductsby2025,forallproducts

tohaveasustainableend-of-lifeoptionby

2040,andreachingNet-Zeroby2040.Itis

alsoarapidlyemergingsectorandhas

becomethefastestgrowingchannelinretail,

withtwoinfiveitemsinGenZ’scloset

estimatedtobesecond-hand.Wecurrently

offeranauthorisedrepairserviceinthe

UKandresaleinitiativesintheUKand

USA(‘ReWair’).

ReWairlaunchedinMarch2024.AsReWair

isanewbusinessmodelforDr.Martens,

thecommercialplanforthefirstyearis

conservative.However,wewilltestandlearn

withtheambitiontogrowthisinlinewiththe

macrotrendsofthesectorandintoamore

significant,profitableportionofourbusiness.

3. RISK MANAGEMENT

3a. Processes for identifying and

assessing climate-related risks

IDENTIFICATION

Weincludeclimate-relatedriskswithinour

Groupriskmanagementframework,which

isexplainedfurtheronpages38and39.We

alsorecognisethedifferentnatureofclimate

riskscomparedtosomeoftheotherriskswe

typicallyface,particularlytheirlonger-term

timehorizonandrelateduncertainty.

Therefore,wecarriedoutamorein-depth

identificationandassessmentofclimate

risksandopportunities(CROs),withthe

assistanceofexternaladvisers.

ASSESSMENT

Toassessandprioritisetheinitiallonglistof

CROsthatwereidentified,weconsideredthe:

• Indicativepotentialfinancialorstrategic

impactonthebusiness

• Likelihoodandsensitivitytoeachscenario

• Velocityofchange

Weappliedthethreeclimatescenarios

(OrderlyTransition,DisorderlyTransition,

HotHouseWorld)assetoutin2c.Those

CROsthatexceededaninternallyagreed

thresholdwereidentifiedaspotentially

significant,prioritisedforfurtherassessment,

andloggedonourclimateriskregister(as

notedin2a).

Furtherscenarioanalysis(assummarisedin

2c)willbeundertakenonaselectionofthese

CROsonanannualbasis.TheCROs

selectedforfurtheranalysiswilldependon

updatesandchangesfromexternalfactors,

suchaspolicyandlegislationchanges,as

wellasbusinesschanges(suchasnew

materialsandproductranges).

Toassesstheimpacttothebusinessarising

fromclimate-relatedrisks,wealignwith

thebusiness’sinternalriskmanagement

process.Forthepurposeofthisassessment,

howweassessmaterialityinrelationto

climate-relatedmattersisreflectedinthe

keyabovethetableinsection2b.

Inthecaseswherewehavenotyet

undertakenanassessmentoffinancial

materialityandthereforefinancialimpact,

thesehavebeenidentifiedas‘further

82 DR. MARTENS PLC ANNUAL REPORT 2024

OUR TCFD DISCLOSURES CONTINUED

planningcycle.Secondly,ourcurrent

assessmentisthatthereisnomaterialimpact

ontheachievementofourbusinessstrategy,

whenconsideringthedirectimpactofclimate

risksseparatefromotherrisks.However,we

doincludeitasakeycomponentofthesocial

andenvironmentalprincipalrisk.

Wealsorecognisethatclimateimpacts

ourotherprincipalrisks,particularlysupply

chain,brandandproduct,legaland

compliance,andthereforeclimateis

consideredinthewayweassessand

mitigatethoserisks.Pages40to43

includefurtherdetailonourprincipalrisks.

Inordertofurtherintegrateclimatewithin

ourapproachtoriskmanagementand

decision-making,climateriskisconsidered

whenassessingnewsupplierlocations

andpartners.Itisconsideredwithinour

newcountryriskassessmentprocess

and,ifrelevant,itisalsoconsideredin

theriskassessmentandduediligence

processforselectingnewsupplierfactory

locations.Findingsarereviewedbythe

OperatingCommittee.

4. METRICS AND TARGETS

Wehaveseveralmetricsandtargetsin

placetomonitorourpriorityclimate-related

risksandopportunities.Theseareoutlined

inthecasestudiesonpages81and82.

4a. Metrics used to assess

climate-related risks and

opportunities

ProgressagainstourNet-Zerotargetwill

bethemainmetricweusetoassessour

managementofclimate-relatedrisks

andopportunities.Wehavesetabsolute

reductiontargetsbasedonanFY20

baseline,alignedwithlimitingglobal

warmingto1.5˚C(scope3near-term

targetsarealignedtowellbelow2˚C).

Dr. Martens commits to reach Net-Zero

greenhouse gas (GHG) emissions

across the value chain by FY40.

Othermetricscurrentlyusedtomonitor

ourclimate-relatedperformanceinclude:

• Sourcerenewableelectricityacrossall

ownedandoperatedsitesby2025

(FY24:93.5%(EMEAincludingUK)).

• Environmentalcertificationstandardto

allTier1suppliersby2025(FY24:46%).

Wecontinuetoworktowardsourother

sustainabilitycommitmentswhichsupport

ourNet-Zerotargets.Approximately99%of

ourfootprintcomesfromscope3emissions,

themajorityofwhichcomefromouruse

ofmaterialsincludingleather,PVCand

packaging.Wehavesettargetstosupport

sourcingoflowerimpactmaterialsincluding:

• 100%offootwearmadefromsustainable

materialsby2040.

• 100%ofnaturalmaterialsinproducts

fromregenerativeagricultureby2040.

• 100%ofpackagingfromrecycledorother

sustainablysourcedmaterialby2028.

4b. Scope 1, 2 and 3 emissions

and related risks

Thetablebelowcontainstheresultsofour

FY23carbonfootprint.OurFY23andFY24

limitedscope1,2and3GHGemissionscan

befoundinourSECRdisclosureonpage53.

ForourFY23footprint,weusedathird-

partyemissionsmanagementtoolto

calculateourfootprintforthefirsttime.

Thischangeinapproachmeantthatsome

categorieswerecalculatedusingdifferent

methodologiesthanthoseusedinFY20

andFY22.Furtherdetailscanbefoundon

pages51to53ofourSustainabilityReport.

Scope

FY23 tonnes

% of total value

chain

Scope1 1,151 0.4

Scope2

(Location)

2,502 –

Scope2

(Market) 1,903 0.7

Scope3

27 7,40 2 98.9

1. Scope2(Location)notincludedinthetotal

orcalculation.

2. Allmaterialscope3emissionsareincluded.The

followingGHGProtocolscope3emissionscategories

areexcludedbecausetheyarecoveredinanother

categoryorbecausetheyarenotrelevanttoour

business:(8)Upstreamleasedassets,(10)Processing

ofsoldproductsand(13)Downstreamleasedassets.

Eachyearweaimtoimprovethegranularity

andqualityofdatausedtocalculateour

footprint.InFY23thiswassignificantly

improvedacrossseveralcategories.Where

available,weusedlifecycleassessments

(LCAs)specifictothematerialswesourced.

Forexample,weusedspecificLCAsfor

49%oftheleathertypeswepurchased,

ratherthanusingthegenericemissions

factorforleather.Theseimprovements

meanourFY23footprintismoreaccurate

andcomprehensivethaninpreviousyears.

4c. Climate-related targets and

performance

Targetsrelatingtoourclimate-relatedrisks

andopportunitiescanbefoundonpages

79to81andallotherprogressagainst

sustainabilitycommitmentscanbefound

throughoutourSustainabilityReport.

5. WHAT’S NEXT?

Next,weaimtoquantifythefinancialimpact

ofthepriorityCROswhichhavenotbeen

assessedindetailyet.Wealsoplanto

conductadoublematerialityassessment.A

doublematerialityassessmentidentifiesthe

sustainabilitymattersthataremostmaterial

toanorganisationanditsstakeholdersby

evaluatingtheirimpactonenvironmental

andsocialfactors(inside-outperspective),

whilealsoconsideringhowthesefactors

influencetheorganisation(outside-in

perspective).Wewillaimtoreviewour

CROsaspartofthisprocess.

Scope 3 emissions category

FY23 emissions

(tCO

Percentage contribution

to scope 3 emissions

Purchasedgoodsandservices 214,405 7 7.3%

Capitalgoods 10,880 3.9%

Fuelandenergyrelatedactivities 973 0.3%

Upstreamtransportationanddistribution 20,993 7.6%

Wastegeneratedinoperations 1,400 0.5%

Businesstravel 6,563 2.4%

Employeecommuting 4,288 1.5%

Downstreamtransportationanddistribution 4,157 1.5%

Useofsoldproducts 1,906 0.7%

End-of-lifetreatmentofsoldproducts 11,100 4.0%

Franchises 287 0.1%

Investments 450 0.2%

STRATEGIC REPORT

83DR. MARTENS PLC ANNUAL REPORT 2024

ThissectionoftheStrategicReportconstitutesDr.MartensNon-FinancialandSustainabilityInformationStatement,producedtocomply

withSections414CAand414CBoftheCompaniesAct2006.Theinformationlistedisincorporatedbycross-reference.

Reporting

requirement

Dr. Martens supporting statements,

policies and procedures Policy description

Where to find more information in

this report Page(s)

Business model

N/A N/A

Business model 16 and 17

Non-financial

KPIs

N/A N/A

Measuring our performance 31

Principal risks

Group risk management processes and

procedures

N/A

Risk management and principal risks 38 to 43

Environmental

matters

Supplier Environmental Standards Sets out our expectations for how our suppliers manage

their environmental impacts, including but not limited to

energy, water, waste and chemicals.

Risk management and principal risks 38 to 43

Stakeholder engagement: Environment

and communities 21

Sustainability Report: Our commitments 48 and 49

Our TCFD disclosures 75 to 83

Made In England Environmental Policy Sets out how our Made In England factory manages its

environmental impacts and includes its commitments.

Animal Derived Materials Policy Sets out the expected standards and behaviour of the

relevant departments of Dr. Martens and its suppliers, in

order to respect best practices when sourcing and using

materials derived from animals.

Human rights

The DOCtrine Our employee code of conduct. Risk management and principal risks 38 to 43

Sustainability Report: Our commitments 48 and 49

Sustainability Report: Our people 63 to 72

Stakeholder engagement: Environment

and communities 21

Stakeholder engagement: Partners 20

Stakeholder engagement: Suppliers 21

Stakeholder engagement: Our people 19

The Rule Book Our employee handbook.

Modern Slavery Statement N/A

Anti-Slavery and Human Trafficking

Policy

This policy sets out our expectation of our people and their

responsibilities in preventing slavery & human trafficking.

Supplier Migrant Worker Policy Our Supplier Migrant Worker Policy sets out the principles

to ensure that Dr. Martens and its suppliers respect the

responsible recruitment and employment of migrant workers

and to help suppliers safeguard the rights and welfare of

migrant workers in their supply chain and manage the

associated risks and responsibilities.

Supplier Code of Conduct and

Workplace Standards

The Supplier Code of Conduct and Workplace Standards

sets out how we expect our suppliers to behave as a

business and gives details on how to meet the expected

standards.

Our people

The DOCtrine Our employee code of conduct. Risk management and principal risks 38 to 43

Stakeholder engagement: Our people 19

Sustainability Report: People 63 to 72

Sustainability Report: Our commitments 48 and 49

The Rule Book Our employee handbook.

Mandatory training on key policies N/A

Social matters

The DOCtrine Our employee code of conduct. Sustainability Report: Our commitments 48 and 49

Sustainability Report: People 63 to 72

Stakeholder engagement: Environment

and communities 21

Risk management and principal risks 38 to 43

Volunteering Policy Our employee policy on volunteering – all full-time

employees get two days annual volunteering allowance

to volunteer for a charity of their choice.

Matched Giving Policy Our employee policy for matched giving – the business

will match employee fundraising up to £250 if it meets the

specific criteria.

Anti-bribery

and corruption

compliance

The DOCtrine Our employee code of conduct. Sustainability Report: People 63 to 72

Audit and Risk Committee Report 134 to 143

Sustainability governance 73

Risk management and principal risks 38 to 43

The Rule Book Our employee handbook.

Our ‘Speak Up’ Whistleblowing Policy Our Speak Up Policy provides guidance on raising

concerns around suspected illegal or unethical business

practice affecting the Company, its employees, customers

or suppliers about any aspect of the way we do business.

Anti-Bribery and Corruption Policy Our Anti-Bribery and Corruption Policy sets out our

expectations, and the mandatory requirements, of our

people in respect of bribery, corruption and gifts and

hospitality related matters.

Supplier Anti-Bribery and Corruption

Policy

Our Supplier Anti-Bribery and Corruption Policy sets out

the mandatory requirements for those doing business with

Dr. Martens.

Third Party Due Diligence Policy Our Third Party Due Diligence Policy sets out the due

diligence process to be conducted prior to engaging third

parties by our people.

Global Sanctions Compliance Policy Our Global Sanctions Compliance Policy sets out the

expectations and requirements for compliance with

sanctions laws when dealing with third parties.

TheStrategicReport,whichhasbeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006,hasbeenapprovedby

theBoardandsignedonitsbehalf.

OnbehalfoftheBoard

Kenny Wilson

ChiefExecutiveOfficer

29May2024

1. Followingamendmentofsections414C,414CAand414CBoftheCompaniesAct2006byTheCompanies(StrategicReport)(Climate-relatedFinancialDisclosure)

Regulations2022,ouralignmentwiththenewdisclosurerequirementsarecoveredonpage75ofourTCFDReportintheindextable.

84 DR. MARTENS PLC ANNUAL REPORT 2024

NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT

GOVERNANCE

Chair’s introduction to governance 86

Governance at a glance 90

Board of Directors 92

Governance Report 96

Global Leadership Team 100

Our stakeholders 101

Our culture 106

Nomination Committee Report 108

Remuneration Committee Report 116

Remuneration Report 119

Audit and Risk Committee Report 134

Directors’ Report 144

In this section:

GOVERNANCE

85DR. MARTENS PLC ANNUAL REPORT 2024

GOVERNANCE HIGHLIGHTS

Appointment of

new CFO

GilesWilsonappointedasChiefFinancial

Officer,joiningthebusinessinearlyFY25.

READ MORE P120

In my opening Chairman’s

statement (see pages 6 to 9),

I set the scene for our FY24

Annual Report with an overview of

our performance, the challenges

we faced both during the period

under review and into a new

financial year, as well as the

successes we achieved through

the resilience and dedication of

our people globally.

OurGovernanceReportsupplementsthis

story,whichissetoutinfullintheStrategic

Report(pages1to84),withdetailsofhowthe

Boardhasprovidedoversightandguidance

totheSeniorLeadershipTeaminnavigating

thepresentchallenges,executingourDOCS

strategyandfocusingonreturningthe

Grouptogrowthwhilepreparingourselves

forthenextphase.

Areas of focus in FY24 and

FY25 priorities

MuchofthedebatewithintheBoardroom

overthecourseofFY24andintothenew

financialyearhasbeenframedbytwostrategic

imperatives.Specifically,addressing

underperformanceandre-ignitingdemandin

ourlargestmarket,theUSA,intheshortterm

andbuildinganorganisationthatismore

mature,equippedandproperlystructuredto

deliveronourambitionsoverthemediumand

longerterm.Onthelatterpoint,weareclear

thattheroadtowardsthisnextphasewillbe

markedlydifferenttothatwhichledustoreach

thesymbolic£1bnrevenuemilestoneinFY23

andthattheBoardhasanimportantrole

toplayinensuringthattheorganisationis

preparedforthis.However,ourimmediate

priorityistoprovideourseniorleadership

withtheguidanceandsupporttheyrequire

toaddresstheissuesfacedbythebusiness

andleaditthroughthischallengingperiod.

Weremainresolutelyfocusedondrivingthis

agendaoverthecomingyear.

DEAR SHAREHOLDERS

DELIVERING A STRONG

GOVERNANCE FOUNDATION

PAUL MASON, CHAIR

86 DR. MARTENS PLC ANNUAL REPORT 2024

CHAIR’S INTRODUCTION TO GOVERNANCE

TheBoardiscommittedtoexecuting

ourDOCSstrategymoreeffectivelyand

discussedthis,includingourkeystrategic

programmes,atourmeetingsthroughout

theyear.Theseandtherangeofother

matterswediscussedoverthecourseofthe

yearareoutlinedonpages96and97,while

theworkundertakenbytheAuditandRisk,

NominationandRemunerationCommittees

isdetailedintheirrespectivereportsfrom

pages134,108and116respectively.

Aswemoveintothisnewfinancialyear,

IandmyfellowBoardmemberswillalso

continuetoensurethatourorganisation

isunderpinnedbyrobustgovernance

processesandpracticesthatsupportour

strategicpriorities.

Evolving leadership

FY24wasayearinwhichourSenior

LeadershipTeamwassignificantlyreshaped

andthisprocesswillcontinueduringthenew

financialyear.InNovember2023,wewere

delightedtoannouncetheappointments

ofGilesWilsonasournewChiefFinancial

Officer(CFO)andofIjeNwokorietothenewly

createdroleofChiefBrandOfficer(CBO).

Subsequenttotheyearend,inApril2024we

announcedthatKennyWilsonwillbestepping

downasCEObeforetheendofFY25.Kenny

willbesucceededbyIje,whowillcontinuein

theroleofCBObeforesteppinguptoleadthe

businessasitsnewCEO.

Gilesformallyjoinedusinhisnewrolein

Mayandiscurrentlyundertakingafull

induction,detailsofwhichcanbefoundon

pages110and111.GilesbringstotheBoard

awealthofexperienceofpublicmarkets,

globalbrandsandwholesaledistributionin

additiontohiscoreskillsetasaseasoned

financeleader.IandmyfellowBoard

memberslookforwardtoworkingwithhim

aswecalibrateourcoreprioritiesaroundour

currentchallengingcircumstancesandlook

togrowthebusinessintheyearsahead.

MoreinformationaboutGilescanbefound

inhisbiographyonpage93andintroductory

Q&Aonpage8.

GilessucceedsJonMortimore,whoretired

inMarch2024havingservedasCFOfor

nearlyeightyears.Duringhistenure,Jon

oversawthetransformationofDr.Martens

fromaprivatelyowned,wholesale-focused

organisationtoapubliclylisted,DTC-led

globalbusinesswithrevenuesexceeding

£1bnforthefirsttimeinFY23.Hisroleinthat

journeywassignificantandhebeginshis

retirementwiththesincerethanksandbest

wishesofthewholeorganisation.Details

oftheinterimarrangementsputinplace

betweenJon’sretirementandGiles’firstday

withthebusinesscanbefoundonpage136.

Ijeisafamiliarfigurewithintheorganisation,

havingservedontheBoardasan

IndependentNon-ExecutiveDirectorsince

theCompanywentpublicinJanuary2021.

HesteppeddownfromtheBoardand

joinedtheGlobalLeadershipTeam(GLT)

full-timeasournewCBOinFebruary2024,

withresponsibilityfortheoverallbrand

strategyandoversightofourGlobal

Marketing,ProductandStrategyfunctions.

Ijehassetabouthisnewrolewith

characteristicenergyandfocusandwill

continuetodosooverthecomingmonths.

Moredetailsregardingthechangestoour

SeniorLeadershipTeamcanbefoundin

theReportoftheNominationCommittee,

frompage108.

Our approach to this year’s

Governance Report

Whenconsideringourapproachtoour

reportingforFY24wetooktheviewthat,

whileundoubtedlycomprehensive,the

lengthandcomplexityoftheAnnual

Reportcanhaveadetrimentalimpact

ontheclarityofthekeymessagingand

toooftenleadstorepetition.

Withthisinmind,thisyearwehave

soughttoproduceareportthatismore

concise,wherepossible,andwitha

tighterfocusonhowwe,asaBoard,

havesoughttoapplyhighstandards

ofcorporategovernancethroughour

activitiesandintheinterestsofour

shareholdersandwiderstakeholders.

Thisincludeshowtheprioritiesofour

stakeholdershaveinformedand

impactedthedecisionswetookasa

Boardduringtheyear.Moreinformation

canbefoundonpages101to104.

WhiletheUKCorporateGovernance

Code(theCode)principlescontinueto

underpinthestructureofourGovernance

Report,wehaveremovedtheprovision-

by-provisionbreakdownwhichfeatured

inlastyear’sReportintheinterestsof

keepingitconcise,clearandengaging.

Ourfull,detailedresponsetotheCode

cannowbefoundinthe‘Governance’

sectionofwww.drmartensplc.comandis

referenced,whererelevant,throughout

theGovernanceReport.Ourstatementof

compliancewiththeCodeandafulllistof

pagereferencesindicatingwhererelevant

informationislocatedwithinthisAnnual

Reportcanbefoundonpage89.

CULTURE AND PEOPLE

AsaBoard,weretainformal

accountabilityforpromotingthe

Dr.MartenscultureofRebellious

SelfExpressionthroughwhichwe

articulatewhoweare,whatwe

believeinandwhatwestandforas

anorganisation,whichisnotrivial

responsibilityforsuchawell-loved,

globalbrand.

Ourcultureisnotsomethingthat

cansimplybeimposedbyBoard

mandate;rather,ithasbeenshaped

byconsumersandourpeopleover

manydecades.TheBoardseeksto

ensureitisprominent,embedded

acrosstheorganisationandreflected

inhowwedobusiness.Wemonitor

thisinanumberofways,including

reviewingthefeedbackfromour

annualEngagementandInclusion

Surveyandthroughtheworkofour

EmployeeRepresentativeNon-

ExecutiveDirector,RobynPerriss.

FURTHERDETAILSONH O W

THE BOARD MONITORS

THE HEALTH OF THE

DR.MARTENS CULTURE

CANBEFOUNDONP106

GOVERNANCE

87DR. MARTENS PLC ANNUAL REPORT 2024

DR. MARTENS BOARD AND SENIOR LEADERSHIP STRUCTURE

PLC

BOARD

GLOBAL

LEADERSHIP

TEAM

Engaging with our stakeholders

Iwaspleasedtohaveseveralopportunities

throughouttheyeartomeetwithinvestors,

listentotheirfeedbackanddiscusstheir

perspectives,particularlyonthechallenges

facedbythebusinessintermsof

performanceandwidermacroeconomic

uncertainty.Theseconversationswere

excellentopportunitiesnotonlyto

understandinvestorconcerns,butalsoto

emphasiseourbeliefinthestrengthofthe

prospectsofthisbrandoverthelongerterm.

TurningtotheBoard’sbroaderengagement

withtheCompany’skeystakeholdergroups,

thisremainsanimportantfacetofourroleand

anessentialoneininformingandguidingthe

decisionswemakeintheBoardroom.Each

ofourstakeholdergroupsisidentifiedinthe

StrategicReport,alongsideourformal

‘Section172Statement’,onpages18to21.

Detailsoftherangeofwaysinwhichwe

consideredtheirinterests,andtheoutcomes

ofourengagementwiththem,areprovidedon

pages101to104ofthisGovernanceReport.

RobynPerriss,ourEmployeeRepresentative

Non-ExecutiveDirector,alsocontinuedto

engagedirectlywithemployeesfromacross

ourglobalbusinessthroughherprogramme

ofemployeelisteningsessions,moreabout

whichcanbereadonpage105.Withour

RemunerationPolicyduetobeputto

shareholdersforitstriennialvoteatour

upcomingAGM,ourRemuneration

CommitteeChair,LynneWeedall,also

engageddirectlywithinvestorsand

employeesonourapproachestoexecutive

remunerationandrenewingourpolicy

forthenextcycle.

Acknowledging our people

Itwouldberemissofmetoconclude

onanythingotherthanasincerenoteof

thanks,frommyselfandonbehalfofthe

Board,toallofouremployeesgloballyfor

theirhardwork,steadfastsupportofthe

brandandtheirresilienceduringadifficult

periodforthebusiness.

PAUL MASON

CHAIR

29May2024

Kenny Wilson

Chief Executive Officer

Giles Wilson

Chief Financial Officer

Paul Mason

Chair

Lynne Weedall

Senior Independent Director

Robyn Perriss

Independent Non-Executive Director

Ian Rogers

Independent Non-Executive Director

Tara Alhadeff

Non-Independent Non-Executive Director

Andrew Harrison

Independent Non-Executive Director

PLC BOARD

 DETAILSOFTHE ROLE OF THE BOARD AT DR. MARTENS

AND THE DIVISION OF RESPONSIBILITIES BETWEEN KEY

BOARD ROLES CANBEFOUNDATDRMARTENSPLC.COM

Ije Nwokorie

Chief Brand Officer

Geert Peeters

Chief Operating Officer

Graham Calder

Chief Technology Officer

Bridget Jolliffe

Chief People Officer

Erik Zambon

Strategy Director

Adam Meek

Chief Product Officer

Mike Stopforth

President, EMEA

Jennifer Somer

President, Americas

Derek Chan

President, APAC

Emily Reichwald

Company Secretary

GLOBAL LEADERSHIP TEAM

EXECUTIVE

DIRECTORS

Kenny Wilson

Giles Wilson

COMPANY

SECRETARY

Emily Reichwald

88 DR. MARTENS PLC ANNUAL REPORT 2024

CHAIR’S INTRODUCTION TO GOVERNANCE CONTINUED

UK Corporate Governance Code 2018 compliance

InFY24theCompanyagainassesseditselfwithreferencetotheUKCorporateGovernanceCode2018(theCode).TheBoardhasnoted

the2024iterationoftheCodeandthatitwillapplytotheCompanywitheffectfromthe2025/26financialyearcommencinginApril2025.

Assuch,theCompanywillfirstreportagainstthenewCodeinitsAnnualReportforFY26.

TheBoardconfirmsthat,fortheyearended31March2024,theCompanyappliedthePrinciplesandcompliedwithallProvisionsofthe

CodeduringFY24.FurtherinformationrelatingtotheBoard’sconsiderationsinrespectoftheindependenceofBoardChairPaulMason

andNon-ExecutiveDirectorTaraAlhadeffcanbefoundonpages110and98respectively.

ThewaysinwhichtheCode’sPrincipleswereappliedduringFY24areevidencedthroughouttheAnnualReport.Thetablebelowsetsout

alistofpagereferencesagainsteachoftheCodePrinciples(AtoR).AfullresponsetotheCodecanbefoundinthe‘Governance’section

ofwww.drmartensplc.com,whilethefulltextoftheCodeitselfcanbefoundontheFinancialReportingCouncil’swebsiteatwww.frc.org.uk.

BOARD LEADERSHIP AND COMPANY PURPOSE

PRINCIPLE SUMMARY LOCATION OF INFORMATION AND RELEVANT PRINCIPLE(S)

A Boardleadershipandeffectiveness Governance Report:

GovernanceFrameworkP99:C

BoardactivitiesP96:A

OurstakeholdersP101:D, E

OurcultureP106:B

NominationCommitteeReportP108:B

AuditandRiskCommitteeReportP134:C, E

Strategic Report:

AstrongsenseofpurposeP2:A

SustainabilityReportP46:A

StakeholderengagementP18:D, E

BusinessmodelP16:B

Strategy,StrategyinactionP22,P24:B

RiskmanagementP38:C

B Purpose,valuesandculture

C Internalgovernanceandcontrols

D Stakeholderengagementandparticipation

E Workforcepoliciesandpractices

DIVISION OF RESPONSIBILITIES

PRINCIPLE SUMMARY LOCATION OF INFORMATION AND RELEVANT PRINCIPLE(S)

F RoleoftheChair Governance Report:

BoardofDirectorsP92:F, G

DelegatingresponsibilitiesP98:F, G, H

NominationCommitteeReportP108:H

AuditandRiskCommitteeReportP134:C, E

Strategic Report:

Chair’sStatementP6:F

CEO’sStatementP10:G

G Independenceanddivisionofleadership

responsibilities

H Non-ExecutiveDirectorroleandtime

commitment

I Boardpolicies,processesandresources

COMPOSITION, SUCCESSION AND EVALUATION

PRINCIPLE SUMMARY LOCATION OF INFORMATION AND RELEVANT PRINCIPLE(S)

J Appointmentprocesses,succession

anddiversity

Governance Report:

Chair’sintroductiontogovernanceP86:J

BoardofDirectorsP92:K

NominationCommitteeReportP108:J, K, L

Strategic Report:

Chair’sStatementP6:J, K

CEO’sStatementP10:J, K

K Boardskills,experienceandknowledge

L Boardevaluation

AUDIT, RISK AND INTERNAL CONTROL

PRINCIPLE SUMMARY LOCATION OF INFORMATION AND RELEVANT PRINCIPLE(S)

M Internalandexternalaudit Governance Report:

AuditandRiskCommitteeReportP134:M, N, O

Strategic Report:

RiskmanagementP38:M, O

GoingconcernandviabilityP44:M, O

N Fair,balancedandunderstandable

O Principalrisks,riskmanagementandinternal

controls

REMUNERATION

PRINCIPLE SUMMARY LOCATION OF INFORMATION AND RELEVANT PRINCIPLE(S)

P Aligningremunerationwithstrategy,purpose

andvalues

Governance Report:

RemunerationReportP119:P, Q, R

RemunerationPolicyP120:Q

Strategic Report:

StakeholderengagementP18:P

MeasuringourperformanceP30:P

SustainabilityReportP46:P

Q Remunerationpolicydevelopment

R Reviewingremunerationoutcomes

GOVERNANCE

89DR. MARTENS PLC ANNUAL REPORT 2024

CODE COMPLIANCE

50%

25%

58%

17%

25%

50%50%

14%

29%

57%

25%25%

50%

AT A

GLANCE

Thefollowingpagescompriseanumberofcharts

settingoutdatarelatingtothetenureanddiversity

ofourBoardmembersandtheGlobalLeadership

Team,whichrepresentstheCompany’sSenior

LeadershipTeambelowBoardlevel.

Considerations under LR 9.8.6(9)-(11)

Thetablesonpage91,opposite,setoutthe

specificdatarelatingtotheethnicandgender

diversityoftheBoardandGLTthattheCompany

isrequiredtodisclosepursuantto,andinthe

formatprescribedby,ListingRule9.8.6(10).

TheCompany’schosenreferencedateforthe

purposeofthesedisclosuresis31March2024,

aligningwithourfinancialyearend.

ForthepurposesofLR9.8.6(11),thedata

disclosedinthesetableswascompiledusing

informationacquiredthroughthe‘Self-ID’tool

accessibletoemployeesviatheCompany’sHR

informationsystem.Usingthistool,employees

mayvoluntarilyandanonymouslydisclose

informationrelatingtotheirethnicbackground

andgenderidentity.

Moreinformationrelatingtothecompositionof

theBoard,tenure,independenceandfurther

explanationsregardingthediversitytargets

describedinLR9.8.6(9)andtherelevantdata

collectionmethodologycanbefoundinthe

NominationCommitteeReportfrompage108.

BOARD TENURE

AS AT 31MARCH 2024

AS AT 29MAY 2024

0-3 years

Andrew Harrison

3-6 years

Kenny Wilson, Robyn Perriss,

Lynne Weedall, Ian Rogers

6+ years

Paul Mason, Tara Alhadeff

0-3 years

Giles Wilson, Andrew Harrison

3-6 years

Kenny Wilson, Robyn Perriss,

Lynne Weedall, Ian Rogers

6+ years

Paul Mason, Tara Alhadeff

GLT TENURE

AS AT 31MARCH 2024

0-3 years

Adam Meek, Meg Johnson,

Jennifer Somer, Graham Calder,

Mike Stopforth and Ije Nwokorie

3-6 years

Kenny Wilson, Derek Chan,

Geert Peeters

6+ years

Jon Mortimore, Erik Zambon,

Emily Reichwald

AS AT 29 MAY 2024

0-3 years

Mike Stopforth, Jennifer Somer,

Adam Meek, Graham Calder,

Ije Nwokorie, Bridget Jolliffe,

Giles Wilson

3-6 years

Kenny Wilson, Derek Chan

6+ years

Geert Peeters, Erik Zambon,

Emily Reichwald

GENDER IDENTITY OF SENIOR MANAGEMENT

AS AT 31MARCH 2024

Male (40 employees)

Female (40 employees)

Non-binary

Prefer to self-describe

1. ComprisesGLTdirectreportsandsubsidiarycompanydirectorsthatarenotalreadycapturedinGLT

orBoarddataonthesepages.Confirmationofgenderidentitywasprovidedonavoluntarybasis.

90 DR. MARTENS PLC ANNUAL REPORT 2024

GOVERNANCE AT A GLANCE

100%

75%

8.3%

57%

43%

75%

25%

REPORTING TABLE ON ETHNIC BACKGROUND OF THE BOARD AS AT 31 MARCH 2024

REPORTING TABLE ON ETHNIC BACKGROUND OF THE GLT AS AT 31 MARCH 2024

Percentage of the Group Board

Percentage of the Global Leadership Team

Number of

Board

members

Number of senior

positions on the

Board (CEO,

CFO, SID and Chair)

Number of

Executive

Directors

Percentage of

Executive

Directors

Whole

Board

 WhiteBritishorotherWhite

(includingminority-whitegroups)

7 3 1 100% 100%

 Black/African/Caribbean/BlackBritish

0 0 0 0% 0%

 Otherethnicgroup,includingArab

0 0 0 0% 0%

 Asian/AsianBritish

0 0 0 0% 0%

 Mixed/MultipleEthnicGroups

0 0 0 0% 0%

 Notspecified/prefernottosay

0 0 0 0% 0%

Number of

GLT members

 WhiteBritishorotherWhite

(includingminority-whitegroups)

 Black/African/Caribbean/BlackBritish

 Otherethnicgroup,includingArab

 Asian/AsianBritish

 Mixed/MultipleEthnicGroups

 Notspecified/prefernottosay

REPORTING TABLE ON GENDER IDENTITY OF THE BOARD AS AT 31 MARCH 2024

REPORTING TABLE ON GENDER IDENTITY OF THE GLT AS AT 31 MARCH 2024

Percentage of the Group Board

Percentage of the Global Leadership Team

Number of

Board

members

Number of senior

positions on the

Board (CEO,

CFO, SID and Chair)

Number of

Executive

Directors

Percentage of

Executive

Directors

Whole

Board

Men

4 2 1 100% 57%

Women

3 1 0 0% 43%

 Notspecified/prefernottosay

0 0 0 0% 0%

Number of

GLT members

Men

Women

 Notspecified/prefernottosay

GOVERNANCE

91DR. MARTENS PLC ANNUAL REPORT 2024

LEADERSHIP AND

RESPONSIBILITY

PAUL MASON

Chair

Joined: September 2015

Experience:

Havingchairedsixconsumerbusinesses

duringhisvariedcareer,Paulbringsawealth

ofexperienceinretailandconsumerbrand

businesses.Paul’sexecutivecareerwithin

theretailsectorincludesChiefExecutive

OfficerofSomerfieldPLC,European

PresidentofLeviStrauss&CoandChief

ExecutiveOfficerofMatalanandAsda.

How Paul supports the Company’s

strategy and long-term success:

Paulhasextensivecorporateknowledge

ofDr.Martensfromwhenitwasaprivate

companythroughtoitstransitionasalisted

business.This,togetherwithhisbreadth

ofexperienceacquiredoverthecourseof

hiscareer,positionshimtooffervaluable

strategicandoperationalinsightandrobust

challengetotheBoard.

Hisopen,engagingandinclusiveleadership

styleencouragestransparencyandthe

sharingofdiverseperspectiveswithinthe

Boardroomandopendialoguewiththe

Company’skeystakeholders.InFY24,

thiswasparticularlyapparentinPaul’s

engagementwithinvestorstounderstandtheir

concernsagainstabackdropofdisappointing

tradingandmacroeconomicuncertainty.

KENNY WILSON

Chief Executive Officer

Appointed: July 2018

Experience:

Withmorethanthreedecadesof

experienceindevelopingandexpanding

globalconsumerbrands,Kennyledthe

transformationofDr.Martensfromaprivate

companytopubliclylisted,amidstthe

challengesofCovid-19.Beforejoining

Dr.Martens,Kennyheldthepositionsof

ChiefExecutiveOfficeratCathKidstonfor

sevenyears,President,EuropeatClaire’s

Accessoriesandalsoa19-yeartenureat

LeviStrauss&Co,whereheheldsignificant

positionsincludingPresidentofLevi’sBrand

forEMEAandSeniorVicePresidentof

CommercialOperations.

AsannouncedbytheCompanyinApril

2024,subsequenttotheyearend,Kenny

willstepdownasCEObeforetheendof

FY25andwillbesucceededbyIjeNwokorie.

How Kenny supports the Company’s

strategy and long-term success:

Kennyisdedicatedtosafeguardingthe

brandandbusinessandpersonally

championsthecustodianmindsetthat

isintrinsictotheDr.Martensculture.

Hisleadershipstylehasbeenshapedby

hispassionforthebrandandextensive

experiencebuiltoveracareerinthebranded

goodssector.Kennyisknownforhis

open-mindedness,abilitytolistenandto

absorbandadapttofreshnewapproaches

andperspectives,bothwithinandoutside

oftheBoardroom.

KennyannouncedhisretirementinApril.

Kennywillleavethebusinessattheendof

FY25,allowingsufficienttimeforasmooth

handovertoournextChiefExecutiveOfficer,

IjeNwokoriewhoisourcurrentChief

BrandOfficer.

The Board’s primary

responsibility is leading

the Company to deliver

sustainable, profitable growth

globally and drive long-term

value for the shareholders

of Dr. Martens plc.

It sets a clear tone from the top

by providing entrepreneurial

leadership of the business

and custodianship of the

Dr. Martens brand.

BOARD DEPARTURES IN FY24

Jon Mortimore,whowasChiefFinancial

Officerforjustundereightyearsfrom

2016-2024,steppeddownfromtheBoard

andretiredon26March2024.

AfterservingforthreeyearsontheBoard,

Ije Nwokoriesteppeddownfromhis

positionasanIndependentNon-Executive

Directoron1February2024andjoinedthe

businessasChiefBrandOfficer.Ijewill

succeedKennyWilsonasCEOandrejoin

theBoardbeforetheendofFY25.

92 DR. MARTENS PLC ANNUAL REPORT 2024

BOARD OF DIRECTORS

Incoming

FY25

Committee membership

Audit and Risk Nomination Remuneration Disclosure Employee Representative Director Chair

GILES WILSON

Chief Financial Officer

Appointed: May 2024

Experience:

Gileshasexperiencenavigatingfinancial

markets,withyearsofexperienceonthe

executiveleadershipteamsoflarge

companies,includingpubliclistedcompany

experience.Gileshasagreatunderstanding

ofwhatitmeanstobealeaderina

much-lovedcompany.GilesjoinsDr.Martens

fromWilliamGrant&SonsLimited,oneof

thelargestglobalspiritscompanies.Priorto

this,GileswasatJohnMenziesplc,firstas

CFOandthenCEO.Gileshasalsoheld

seniorrolesatCommercialEstatesGroup

andGallaherGroupplc.

How Giles supports the Company’s

strategy and long-term success:

GilesisanexperiencedChiefFinancial

Officerwithawide-rangingskillsetanda

strongtrackrecordofdrivinggrowthat

otherorganisations,inparticular,Giles’

understandingofbrandedgoodscoupled

withoperationalmanagementleadership

experiencewillbeanassetasthebusiness

progressestothenextstageofitsstrategy.

Giles’recentlistedcompanyexperience

providestheBoardwiththestandardof

technicalskillsandexpertiseexpected

byourregulatorsandinvestors.Giles’

leadershipoftheglobalfinancefunctions

willhelptoaligntheCompany’sfinancials

acrossthebusinesswiththeDOCSstrategy,

adjustingasappropriatetofacechallenges

andopportunities.

LY N N E W E EDA L L

Senior Independent Director

Appointed: January 2021

Experience:

Lynne’s30-yearcareerspansacrossvarious

executiveandnon-executiverolesinUK

publicandprivatelimitedcompanies.She

hasheldkeypositionssuchasGroupHR

DirectorforSelfridgesGroup,Carphone

Warehouseplc,andDixonsCarphoneplc,

wheresheplayedacrucialroleinmerger

integration.Additionally,Lynneservedas

Non-ExecutiveDirectorandRemuneration

CommitteeChairforGreeneKingplc,

WilliamHillplc,andTreattplc.Priortothis,

LynneheldseniorrolesatWhitbreadplc,

Bupa,andTescoplc.

How Lynne supports the Company’s

strategy and long-term success:

Lynneisanexperiencednon-executive

directorandcontinuedtochairthe

Company’sNominationandRemuneration

Committeeswithdiligenceanddiscretion

duringayearofsignificantchangeforthe

SeniorLeadershipTeam.Lynneisrespected

byherpeersforherpeople-centred

approach,focusondiversityandsuccession

planningandherabilitytoofferalternative

perspectivesandpragmaticsolutionstothe

rangeofissuesdiscussedatBoardand

committeemeetings.

Other appointments: Non-Executive

DirectorandChairoftheRemuneration

CommitteeandNominationCommitteeof

SoftcatPLC,Non-ExecutiveDirectorand

ChairoftheRemunerationCommitteeof

Greggsplc,TrusteeofThePrince’sTrust

andNon-ExecutiveDirectorandChairofthe

RemunerationCommitteeofStagecoach

GroupLtd.

ROBYN PERRISS

Independent Non-Executive Director

Appointed: January 2021

Experience:

Robynbringsextensivefinancialand

governanceexpertise,coupledwithdiverse

experienceinthetechnologyandmedia

industries.UntilJune2020,sheservedas

FinanceDirectoratRightmoveplc,aFTSE

100company,whereshenavigatedhigh

growthamidstdigitaldisruptionandenhanced

governanceandstrategicoversight.Priorto

Rightmove,RobynheldthepositionofGroup

FinancialControlleratAutoTrader.

How Robyn supports the Company’s

strategy and long-term success:

RobynchairstheAuditandRiskCommittee

withastrongfocusonrisk,controlsand

assurance,bringingclaritytocomplex

issues.Sheisvaluedforherfinancial

expertise,capitalmarketsexperienceand

throughherongoingsupportandguidance

oftheGroupFinancefunction.Her

extensiveregulatoryknowledgeandkeen

focusonESGmatterscontinuetosupport

theBoardandtheGlobalLeadershipTeam.

AsEmployeeRepresentativeNon-

ExecutiveDirector,Robynalsoengages

directlywithemployeesgloballyandhas

adoptedanapproachwhichvaluesopen

communicationandencouragesthemto

speaktheirminds.Sheisaprominentfigure

at Dr. Martens and a respected mentor of

senioremployees,whovalueherexpertise

andexperience.

Other appointments:Non-Executive

DirectorofSoftcatPLC,HuelLtd,and

NextFifteenGroupplc,whereshealso

chairstheirrespectiveauditcommittees.

GOVERNANCE

93DR. MARTENS PLC ANNUAL REPORT 2024

KNOWLEDGE AND

EXPERIENCE

TARA ALHADEFF

Non-Independent Non-Executive Director

Appointed: May 2015

Experience:

TaraisapartneratPermira,aglobal

investmentfirm,overseeingbrand

investmentsintheconsumersector.Since

joiningPermira16yearsago,Tarahas

collaboratedwithnumerousbrands,retailers

andconsumerinternetcompanies,

contributingtosignificanttransactionssuch

asPermira’sacquisitionofDr.Martens.

InitiallyjoiningtheDr.MartensBoardinMay

2015,TaratransitionedtoaNon-Independent

Non-ExecutiveDirectorroleinJanuary2021.

BeforehertenureatPermira,sheworkedin

investmentbankingatMorganStanley.

How Tara supports the Company’s

strategy and long-term success:

TaraistheCompany’slongest-serving

Boardmemberandbringsvaluable

continuityandcorporateknowledge

spanningitstransitionfromprivatetopublic

ownership.TheBoardcontinuestobenefit

fromTara’sextensivesectorexpertiseand

broadinternationalexperience,whileher

strongfinancialacumen,questioning

mindsetandcollaborativestylearevaluable

assetstotheBoard.Tara’sappointment

alsocontinuestofacilitategoodshareholder

engagementwiththePermirafunds.

Other appointments:PartneratPermira

AdvisersLLP,DirectoratSixPlatformVIII

Limited,MemberofSupervisoryBoardat

HazelParentCoSAS,Non-Executive

DirectoratHanaGroupandGoldenGoose.

ANDREW HARRISON

Independent Non-Executive Director

Appointed: May 2023

Experience:

AndrewistheManagingDirectorofFreston

Ventures,aleadingconsumerinvestment

firm.HespentovertwodecadesatCarphone

Warehouse,includingrolesasChief

ExecutiveandChair.Andrewplayedapivotal

roleinitsgrowthandinternationalexpansion.

HeledthemergerwithDixonsin2014,

servingasDeputyChiefExecutive.Andrew

currentlyservesasSeniorIndependent

DirectoratOcadoGroupplcinadditionto

chairingtheRemunerationCommitteeand

servesasthedesignatedNon-Executive

Directorforworkforceengagement.

How Andrew supports the Company’s

strategy and long-term success:

Andrewbringsextensivelistedcompany

experiencetotheBoardandishighly

valuedbyBoardcolleaguesandtheGlobal

LeadershipTeamforhiscommercial

expertise,broad-mindedapproachand

engagingandsupportivestyle.Heoffers

strong,entrepreneurialleadershipand

valuableinsight,enablinghimtocontribute

alternativeviewpointsand,where

necessary,constructivechallengetothe

Board’sdiscussions.

Other appointments:SeniorIndependent

DirectoratOcadoGroupplc,Chairat

WhoCanFixMyCar.comLtd,ChairatStrike

Limited,ChairatChickenShop(Chik’nLtd),

DesignatedMemberofFrestonVentures

InvestmentsLLP,DirectoratSmilesand

SmilesHoldingLimited,ChairofTrustees

atTheMix.

IAN ROGERS

Independent Non-Executive Director

Appointed: January 2021

Experience:

IanhasbeentheChiefExperienceOfficer

atLedgersince2020,overseeingits

consumer-facingofferandprotectingdigital

assets.Previously,heservedasChief

DigitalOfficeratLVMH,workingwithluxury

retailbrandslikeLouisVuittonandDior,and

continuestoactasanadviser.Ian’spast

rolesincludeCEOofBeatsMusic,President

andChiefTechnologyOfficeratMediacode,

andWebmasteratWinamp.Hecontributed

tothe2015launchofAppleMusicandhas

beenapioneerofmusic-relatedwebsites

sincetheearly1990s.

How Ian supports the Company’s

strategy and long-term success:

Ian’sextensiveretail,digitalandmusic

background,coupledwithhislifelong

passionforthebrand,enrichestheBoard’s

discussions.Hisinsightsintoculturalshifts

andfuturetrendsfosterconstructive

dialogueamongBoardmembersandwithin

thebusiness.Ian’sdigitalexpertiseand

experienceintheUSAarehighlyvalued

byrelevantbusinessteams,asheshares

histimeandextensiveindustryconnections

tosupportthem.

Other appointments:ChiefExperience

OfficeratLedger,AdviseratLVMH,Board

ObserveratLyst.

Note on Committee membership:

IansteppeddownfromtheRemuneration

Committeewitheffectfrom1May2023.

94 DR. MARTENS PLC ANNUAL REPORT 2024

BOARD OF DIRECTORS CONTINUED

Outgoing

FY25

Committee membership

Audit and Risk Nomination Remuneration Disclosure Employee Representative Director Chair

EMILY REICHWALD

Chief Sustainability Officer

and Company Secretary

Appointed: January 2021

Experience:

EmilyjoinedDr.Martensin2015asGeneral

Counsel,laterbecomingCompany

SecretaryupontheCompany’slistingonthe

LondonStockExchangein2021.Sheisa

memberoftheGlobalLeadershipTeamand

hasledtheLegalandSustainabilityteams

forthelastnineyears.Emily’sremitalso

includedtheHRfunctionbetween2022

and2024andshecontinuestochairthe

Dr.MartensFoundation.Priortojoining

Dr.Martens,sheheldseniorlegalpositions

atAkzoNobelandICIplc,andtrainedasa

solicitoratLinklatersduringwhichtimeshe

wassecondedtoGECapitalandBPplc.

Emily’sexternalexperienceincludesserving

asaNon-ExecutiveDirectoratUK-based

fuelpovertycharityNationalEnergyAction

from2015to2018.

How Emily supports the Company’s

strategy and long-term success:

Emilyisarespectedadvisertothe

Boardandhascultivatedstrongworking

relationshipswiththeChairandCEO.

Havingheldavarietyofrolesand

responsibilitiesduringhercareerwith

Dr.Martens,shehasacquiredsignificant

insightintoallaspectsofthebusiness

andcontinuestofacilitateeffective

communicationbetweentheBoard

andstakeholdersonrelevantissues.

EmilywillstepdownasCompanySecretary

ofDr.Martensplcon3June2024and

followingashortbreakwillreturntothe

Companyinaparttimeadvisercapacity

laterintheyear.

ATTENDANCE AT MEETINGS HELD DURING FY24

TheattendanceofeachDirectoratBoardandCommitteemeetingsheldintotalin

FY24issetoutbelow.InadditiontoBoardandCommitteemeetings,sufficienttime

isprovided,periodically,fortheChairtomeetprivatelywiththeSeniorIndependent

DirectorandtheNon-ExecutiveDirectorstodiscussanymattersarising.

Board

Audit and Risk

Committee

Remuneration

Committee

Nomination

Committee

Number of meetings held

9 5 7 6

1April2023–31March2024

Numberattended/maxnumbercouldhaveattended:

Paul Mason 9/9 6/6

Kenny Wilson 9/9

Jon Mortimore 9/9

Tara Alhadeff 9/9 5/6

Robyn Perriss 9/9 5/5 7/7 6/6

Ian Rogers 9/9 1/1

5/6

Ije Nwokorie 9/9

5/5 3/4

Lynne Weedall 9/9 5/5 7/7 6/6

Andrew Harrison 9/9 4/5

6/6 5/5

ThereweresevenscheduledandtwoadditionalBoardmeetingsheldinFY24.

1. IjeNwokorieattendedtheMarch2024meetingattherequestoftheBoard.

2. AndrewHarrisonwasunabletoattendthe3May2023AuditandRiskCommitteemeetingdueto

pre-existingbusinesscommitments.ThiswasnotifiedpriortotheChairoftheCommittee.

3. TaraAlhadeff,IjeNwokorieandIanRogerswereunabletoattendtheNominationCommitteemeeting

on13April2023asitwascalledatshortnotice.

4. IanRogerssteppeddownfromtheRemunerationCommitteeon1May2023.

BOARD SKILLS AND EXPERIENCE

Brand/

consumer Financial Retail Digital PLC International

Independent?

Paul Mason

Kenny Wilson N/A

Jon Mortimore

N/A

Tara Alhadeff

Ije Nwokorie

Ian Rogers

Robyn Perriss

Lynne Weedall

Andrew Harrison

Giles Wilson

N/A

1. SeniorrolesoutsidetheUK.

2. Steppeddownon26March2024.

3. Steppeddownon1February2024.

4. JoinedtheBoardon13May2024.

GOVERNANCE

95DR. MARTENS PLC ANNUAL REPORT 2024

BOARD ACTIVITIES

These pages provide an

overview of the range of

matters the Board discussed

at its meetings together with a

timeline of key events taking

place during the year.

Whilenotintendedtopresentanexhaustive

listofeveryitemconsideredbytheBoard

overthecourseoftheyear,thisinformation

providesinsightintothenatureandsubstance

oftheconversationsthattakeplaceinthe

BoardroomandhowtheBoard’sactivities

continuetofocusondeliveringtheDOCS

strategy,withdueregardtotheinterestsof

alloftheGroup’skeystakeholdergroups.

ThevastmajorityoftheBoard’ssignificant

discussions,debatesanddecisionstakeplace

duringitsregular,scheduledBoardmeetings.

Thesearesupplementedbyitsannual

strategy‘off-site’and,whereneeded,

additionaldeepdivestoprovideamore

in-depthunderstandingofandcontext

aroundkeyissues.

Boardmeetingsarealsoanimportant

mechanismthroughwhichtheDirectors

dischargetheirduties,particularlyunder

Section172oftheCompaniesAct2006.

BOARD ACTIVITIES TIMELINE

April 2023

Scheduled meetings:

Key events:

Executive Director

regional visit

(USA)

Employee Listening

Group (Global

Management Team)

May 2023

Scheduled meetings:

Key events:

Andrew Harrison joined the Board

June 2023

Scheduled meetings:

Key events:

Board Strategy Off-Site

(London)

Full Year Investor

Roadshows

FY23 Full Year results,

publication of FY23

Annual Report and AGM

Notice of Meeting

July 2023

Scheduled meetings:

Key events:

NED engagement visit to the

UK factory

Executive Director regional visits

(USA, France, Japan, Korea)

Employee Listening Groups

(APAC, Cobbs Lane)

AGM trading update

Board and Committees:

Board

Remuneration Committee

Audit and Risk Committee

Nomination Committee

Annual General Meeting

GLT meeting

Other calendar events:

Director attended events

and other key dates

Employee Listening Group

Market announcements

Agendasareagreedinadvancebythe

ChairmanandCompanySecretary

followingdiscussionaboutproposedtopics

andfocusareaswiththeChiefExecutive

OfficerandChiefFinancialOfficer.Tothe

extentpossible,meetingsarescheduled

toalignwiththewidercadenceofthe

businesstoensurethattheytakeplace

atoptimalpointsthroughouttheyear.

Agendasaretailoredtoappropriately

balancedetailedupdatesfromthe

ExecutiveDirectorsontradingandfinancial

performancewith‘deepdives’intospecific

strategicpriorityareasandtherangeof

governancerelatedandothermatters

thatrequiretheBoard’sattention.

LINKS TO STRATEGY:

 Direct-to-consumerfirst

 Organisationalandoperational

excellence

 Consumerconnection

 SupportbrandexpansionwithB2B

READ MORE ABOUT OUR

STRATEGY FROMP22

The Board spends a significant portion of its

time during its meetings reviewing, analysing

and debating matters relating to the

Company’s key strategic priorities, advising

and shaping strategic direction as needed.

Link to relevant strategic pillars:

Summary of activities in FY24:

• Held the annual two-day Board strategy

‘off-site’ at which topics including the

strategic direction and development of

the business over the coming five-year

period were discussed in depth.

• Discussed insights from the work

undertaken in partnership with specialist

external consultants TruePoint and OC&C

during the year to identify options to

optimise the structure of the organisation

to better support DTC-led operations.

• Reviewed the five-year plan and

considered the critical drivers of future

growth, including driving brand heat

and demand, retail expansion in key

markets, the rollout of omnichannel

capabilities, consumer data

improvements, and ecommerce.

• Reviewed and discussed senior

appointments and succession planning

for key roles, notably the CEO.

• Significant focus during Board

discussions on the developing

macroeconomic context and resolving

the challenges impacting the Group’s

largest business in the USA.

STRATEGY

96 DR. MARTENS PLC ANNUAL REPORT 2024

GOVERNANCE REPORT

September 2023

Scheduled meetings:

Key events:

Product ‘teach-in’

investor event

Employee Listening

Group (EMEA Retail)

January 2024

Scheduled meetings:

Key events:

Employee Listening

Group (EMEA Non-

Retail)

Q3 trading update

February 2024

Scheduled meetings:

Key events:

Executive Director

regional visits

(USA, Hong Kong,

Japan)

Announcement of

CFO start date

Ije Nwokorie stepped

down from the Board

November 2023

Scheduled meetings:

Key events:

Executive Director regional visit (USA)

FY24 Half Year Results Investor

Roadshow

Employee Listening Group

(Global Supply Chain)

Announcements of new CFO and

CBO appointments

FY24 Half Year Results

Most Board meetings incorporate focused

‘deep dive’ sessions dedicated to areas of

particular strategic importance, which are

typically led by members of the GLT. These

sessions enable the Board to delve into the

complexities of key issues with the relevant

members of senior leadership, enabling

more informed decision-making.

Link to relevant strategic pillars:

Summary of activities in FY24:

• Reviewed the Amp product strategy,

including the prior evolution of the range

and plans for its future development.

• Discussed key marketing initiatives,

upcoming campaigns and priority

areas of focus for the Marketing

function from financial, brand and

consumer perspectives.

• Considered detailed updates on the

Americas business and discussed

local market conditions, progress in

addressing the identified challenges,

reigniting boots in that market, future

outlook and key strategic priorities.

• Detailed discussions focusing on the

budgeting process and proposals for

FY25, taking into consideration the

key underlying assumptions, principal

risks and stress-testing.

• Reviewed the brand and product

strategies, including learnings from

prior years, current focus areas and

longer-term objectives.

These comprise the range of regular

reviews, regulatory updates and other

standing items which assist the Board in

fulfilling its statutory duties to the Company.

Link to relevant strategic pillars:

Summary of activities in FY24:

• Agreed the approach to the 2023 Annual

General Meeting and approved the

resolutions to be put to shareholders

for approval.

• Reviewed shareholder returns,

considering metrics including cash flow

and liquidity prior to approving the £50m

share buyback programme and the

interim and final dividends for FY24.

• Received reports detailing the range of

matters considered and approved by the

Operating and Real Estate Committees

during the year.

• Considered a range of ‘ordinary course’

governance matters during the year,

including reviewing the draft Annual

Report and approving the Modern

Slavery Statement.

• Undertook an internal Board Evaluation,

led by the Chair and Company Secretary,

to assess its effectiveness and

performance during the year, with feedback

from Directors provided and discussed by

the Board.

• Monitored regulatory and legislative

developments and considered any

potential impact on operations.

These provide an opportunity for the Board

to discuss current trading and financial

performance with the Executive Directors

and offer advice and insight in relation to

near-term business priorities and

stakeholder concerns.

Link to relevant strategic pillars:

Summary of activities in FY24:

• Received global operational

performance updates from the CEO,

including progress in priority initiatives

and key markets and the activities of

the GLT.

• Considered detailed financial updates

presented to each meeting and led

by the CFO, covering recent trading

performance, forecasting, capital

allocation and budgeting.

• Reviewed the plan for an orderly

transition to a new CFO, including the

establishment of the Finance Panel.

• Received updates from the Chairs of

the Audit and Risk and Remuneration

Committees on the activities of those

Committees, including key topics of

discussion and points of concern.

• Considered the themes and issues

raised during the Employee Listening

Groups held during the year.

• Received regular updates on investor

relations and external communications

activities, covering feedback from

investor roadshows, recent media

coverage and planned media activities.

DEEP DIVES GOVERNANCE DIRECTOR UPDATES

October 2023

Scheduled meetings:

Key events:

Investor Roadshows (Canada, USA)

Executive Director regional

visits (USA, Korea)

December 2023

Scheduled meetings:

Key events:

Executive Director regional visit (Spain)

FY24 Half Year Results Investor

Roadshow

March 2024

Scheduled meetings:

Key events:

Fireside chat:

Remuneration with

Lynne Weedall

August 2023

To the extent possible,

August is kept clear to

give our teams time to

rest and recharge.

97DR. MARTENS PLC ANNUAL REPORT 2024

GOVERNANCE

DELEGATING RESPONSIBILITIES

The following pages illustrate our governance framework and, in particular,

how the Board delegates authority to its Committees and the wider business.

KEY BOARD ROLES AND RESPONSIBILITIES

Chief Executive Officer

CEOKennyWilsonreportstotheChairand

totheBoardandisresponsibleforthe

executivemanagementoftheDr.Martens

Group.AllmembersofGlobalLeadership

TeamreporttotheChiefExecutiveOfficer.

Kenny’skeyresponsibilitiesincludeleading

theleadershipteaminmanagingthe

Group’sactivitiesonaday-to-daybasis,

developingGroupstrategy,plansand

commercialandotherobjectiveswiththe

Board,leadingcommunicationswith

shareholdersandotherkeystakeholders

andensuringthattimelyandaccurate

informationisdisclosedtothemarketand

settinganexampletotheGroup’sworkforce

andcommunicatingtothemexpectationsin

respectoftheCompany’sculture.

Director tenure

AlltheIndependentNon-Executive

Directorsremainwithintheirrecommended

maximumnine-yeartermsofservice.

TwoBoardmembers,BoardChairPaul

MasonandNon-ExecutiveDirectorTara

Alhadeff,aresettoreachthisthreshold

duringFY25.TheBoard’slongestserving

DirectorisTaraAlhadeff,whowillhave

servedfornineyearsasatthedateof

publicationofthisAnnualReport.

TheCommitteeandBoardcontinuetovalue

thebreadthanddepthofexperienceand

insightthatbothPaulandTaracontinueto

contributeandtheCommitteesupportsthe

Board’srecommendationthatbothbe

re-electedforafurtheryearatourAGMinJuly.

Director independence

TheindependenceoftheNon-Executive

Directorswasconsideredaspartofthe

FY24BoardEvaluationprocess.TheBoard

determinedthatalloftheNon-Executive

Directorscontinuedtodemonstrate

independenceinbothcharacterand

judgementduringFY24.Eachofthe

Non-ExecutiveDirectorsthatwere

consideredbytheBoardtobeindependent

duringtheyearareidentifiedonpages98.

Chair of the Board

TheChairofourBoard,PaulMason,leads

theBoardandensuresitfulfilsits

responsibilitiestotheCompanyandits

stakeholderseffectively,whilepromoting

highstandardsofcorporategovernance

acrosstheGroup.Heisresponsiblefor

facilitatingconstructiveBoardrelationsand

promotingacultureofopennessand

debatewithintheBoardroomandensuring

theclearandeffectivecommunicationof

informationtoshareholdersandseeking

regularengagementwiththem.

Senior Independent Director

OurSID,LynneWeedall,actsasasounding

boardfortheChair,providessupportinthe

deliveryofhisobjectivesandservesasan

intermediaryfortheotherDirectors.Lynne

isresponsibleforoverseeingtheChair’s

performanceevaluationandsuccession

plansandisavailableasanadditional

contactpointforshareholdersifrequired.

Non-Executive Directors

OurfiveNon-ExecutiveDirectors(four

independent,onenon-independent)

usetheiroutsideexpertisetosupport

theExecutiveDirectorsandtheGlobal

LeadershipTeam.Theyadviseonthe

developmentofGroupstrategy,providing

objectiveandconstructivechallenge,

andscrutinisetheGroup’sfinancialand

operationalperformance.Moreinformation

abouttheindependenceandother

commitmentsoftheNon-Executive

DirectorscanbefoundintheNomination

CommitteeReportonpages108to115.

OverhalfoftheDr.MartensplcBoard(excluding

theChair)comprisedIndependentNon-

ExecutiveDirectorsduringFY24.The

membershipsofboththeRemunerationand

AuditandRiskCommitteescontinueto

compriseIndependentNon-ExecutiveDirectors

only,whiletheNominationCommittee

comprisesalloftheNon-ExecutiveDirectors

andtheChairoftheBoard.

TheBoardhasalsodeterminedthat,withthe

exceptionofTaraAlhadeff,theNon-Executive

Directorsremainfreefromrelationshipsor

circumstanceswhichmay(orcouldappearto)

affecttheirjudgement.Moreinformationabout

Tara’srelationshipwiththeCompany’slargest

shareholder,IngreLuxS.àr.l(whichiswholly

ownedbyfundsadvisedbyPermiraAdvisers

LLP),isprovidedintheDirectors’Report

sectionofthisAnnualReportonpage144.

TheBoardconfirmsthatTaraAlhadeffisnot

consideredtobeindependentforthepurposes

oftheCodeandisidentifiedassuchonpage98.

TarawasappointedtotheBoardbyIngreLux

S.àr.lpursuanttoitsrelationshipagreementwith

theCompany.ThisagreementpermitsIngreLux

S.àr.ltoappointoneNon-ExecutiveDirectorto

theBoardforsolongasitretainscontrolof10%

ormoreofthevotesabletobecastonall(or

substantiallyall)mattersatanygeneralmeeting

heldbytheCompany.

Time commitments

Non-ExecutiveDirectorsareexpectedto

avoidholdinganexcessivenumberof

externalappointments;however,theBoard

recognisesthattheserolescanvary

significantlyintermsoftheircomplexityand

requiredtimecommitment,sohasagreedto

assessthemonacase-by-casebasis.

Whendoingso,theBoardconsidersthe

numberofboardpositionsthattheDirector

inquestionholdsatotherpubliccompanies

alongsidethelikely‘size’oftheirnewrole.It

alsotakesintoaccountexternallypublished

guidanceandproxyvotingguidelinesto

ensuretheprinciplesofmajorinvestorsin

respectof‘overboarding’areconsidered.

EachoftheNon-ExecutiveDirectorshas

confirmedthattheycontinuetobeableto

meettheCompany’sexpectationsofthem

andtoallocatesufficienttimetodischarge

theirdutiesasDirectorseffectivelyandthe

Boardissatisfiedthatthiscontinuestobe

thecase.Directors’externalcommitments

aremonitoredbytheBoardonanongoing

basis,withtheassistanceoftheCompany

Secretariatfunction,toensurethatthey

remainabletoallocatesufficienttimeto

theirdutiestotheCompany.

98 DR. MARTENS PLC ANNUAL REPORT 2024

GOVERNANCE REPORT CONTINUED

OUR GOVERNANCE FRAMEWORK

TheDr.MartensplcBoardsetstheCompany’spurposeandstrategyandholds

managementtoaccountforitsdeliverywithaviewtosecuringthesuccessofthe

businessoverthelongertermforthebenefitofourshareholdersandwiderstakeholders.

Itisresponsibleforensuringthatthestrategyalignswithandpromotesourculture,

encompassingthecoretenetsofbrandcustodianship,‘doingtherightthing’,and

‘leavingthingsbetterthanwefoundthem’.

GLOBAL LEADERSHIP TEAM (GLT)

Reporting into the CEO, this constitutes

the Group’s core Senior Leadership Team.

The GLT has accountability over each of

the regional and central global business

functions: EMEA, Americas, APAC,

Technology, Operations, Brand, Strategy,

Product, Marketing, Finance, Legal &

Compliance, HR and Sustainability.

It is responsible for executing our

strategy, identifying growth opportunities

and developing strategic initiatives while

supporting the Board in meeting its

oversight requirements.

See page 100 for more information about

the GLT.

EXECUTIVE DIRECTORS

Comprising the CEO and CFO, the

Executive Directors are responsible

for the day-to-day management of the

business with the support of the GLT.

All matters not specifically reserved for

the Board or the Board Committees and

necessary for the ongoing management

of the business are delegated to the

Executive Directors.

In the interests of good governance,

the Executive Directors exercise some

of their delegated authority through

committees, particularly the Operating

and Real Estate Committees.

TheBoarddischargesitsdutiesbothdirectlyandthroughauthorityithasdelegatedtoits

threePrincipalBoardCommittees,theExecutiveDirectorsandtheGlobalLeadershipTeam.

TheChairsofeachCommitteeupdatetheBoardontheiractivitiesateachBoardmeeting.

FulldetailsoftheBoard’sresponsibilitiesandtermsofreferencefortheprincipalBoard

Committeesareavailableatwww.drmartens.com.

• Reviews the structure, size and composition of the Board.

• Recommends potential Board and senior management appointments and reappointments

to the Board.

• Oversees succession planning for the Company’s Directors and Global Leadership Team.

• Monitors effectiveness of policies and strategy for diversity, equity and inclusion.

NOMINATION COMMITTEE

SEE PAGES 108 TO 115

• Develops and monitors the ongoing appropriateness of the Group’s policy on Executive

remuneration.

• Determines the levels of remuneration for the Board and leadership.

• Monitors remuneration structures and recommends changes.

• Reviews overall workforce remuneration and related policies and the alignment of incentives

and rewards with culture and takes these into account when determining the remuneration of

the Board and leadership.

REMUNERATION COMMITTEE

SEE PAGES 116 TO 125

• Assists the Board in discharging its responsibilities in relation to financial and narrative reporting.

• Monitors and reviews the Group’s financial controls and systems.

• Advises on the appointment of, manages the relationship with and monitors the effectiveness

of the external auditor.

• Reviews the effectiveness of wider compliance, including the whistleblowing and fraud

systems in place within the Group.

AUDIT AND RISK COMMITTEE

SEE PAGES 134 TO 143

PLC BOARD

MARKET

DISCLOSURE

COMMITTEE

These support the Board and business in specific areas. They operate to clearly defined terms of reference and, in the case of the Operating and

Real Estate Committees, under authority delegated to them under the Delegation of Authority Policy. While not considered a Principal Board

Committee, all Non-Executive Directors are members of the Disclosure Committee and at least one must be present at each of its meetings.

KEY SUPPORTING COMMITTEES AND BUSINESS FORUMS

OPERATING

COMMITTEE

REAL ESTATE

COMMITTEE

OPERATIONAL

RISK

COMMITTEE

SUSTAINABILITY

COMMITTEE

PRINCIPAL BOARD COMMITTEES

GOVERNANCE

99DR. MARTENS PLC ANNUAL REPORT 2024

GOVERNANCE

Incoming

FY25

ComprisingtheCompany’smostseniorleaders,theGLTistaskedwith

overseeingday-to-daybusinessoperationsandplaysasignificantrole

inimplementingourstrategy.

GEERT PEETERS

Chief Operating Officer

Joined: June 2018

Responsibilities: Leads the Company’s

Global Supply Chain and Operations

functions. These include Materials

Management, Product Sourcing, Product

Quality and Compliance, Demand and Supply

Planning, Logistics and Regional Operations.

IJE NWOKORIE

Chief Brand Officer

Joined: February 2024

Responsibilities: Ije sets the overall brand

strategy, vision and direction – elevating

our brand and further strengthening the

partnership with our Product, Marketing,

and Strategy teams and embedding

sustainability across the business.

MEET THE GLOBAL

LEADERSHIP TEAM

GRAHAM CALDER

Chief Technology Officer

Joined: October 2023

Responsibilities: Leading the

development and implementation of

the business’s technological strategies,

driving innovation to enhance operational

efficiency, and focusing on the direct-to-

consumer proposition.

BRIDGET JOLLIFFE

Chief People Officer

Joined: April 2024

Responsibilities: Oversees the

people strategy to enable an inclusive

organisation, inspiring leadership and a

unique employee experience. Leads the

People team to deliver commercial success

by putting people at the heart of our values

and brand.

ERIK ZAMBON

Strategy Director

Joined: April 2017

Responsibilities: Leads the Global

Strategy team in defining medium-term

strategic priorities, identifying growth

opportunities, and managing strategic

value creation programmes in collaboration

with the leadership team.

JENNIFER SOMER

President, Americas

Joined: November 2021

Responsibilities: Oversees the Dr. Martens

business in the Americas region including

regional strategy, product, marketing and

direct responsibility for the brand’s Retail,

Ecommerce and Wholesale businesses.

ADAM MEEK

Chief Product Officer

Joined: December 2021

Responsibilities: Leads product creation

at Dr. Martens and has ownership of design,

development, category merchandising and

Product Insight.

DEREK CHAN

President, APAC

Joined: September 2019

Responsibilities: Leads the strategic

direction and operational management

of Dr. Martens’ business in the Asia-Pacific

region, including regional strategy, product,

marketing, and oversight of the brand’s Retail,

Ecommerce and Wholesale operations.

MIKE STOPFORTH

President, EMEA

Joined: May 2023

Responsibilities: Directs the strategic and

operational management of Dr. Martens in

the EMEA region, including product and

marketing alongside our Ecommerce and

Wholesale channels.

INFORMATION ON THE ROLE OF THE GLT

P 99

100 DR. MARTENS PLC ANNUAL REPORT 2024

GLOBAL LEADERSHIP TEAM

WHAT ARE THEIR PRIORITIES?

• Strongvaluecreation,ourbusiness

modelanddeliveryoftheDOCS

strategy.

• Ourpositionandperformance

inrespectofESGmatters.

• Strengthofleadership.

• Cleararticulationandeffective

managementofrisks.

• Fair,balancedandunderstandable

reportingoffinancialresults.

• Efficientcapitalallocation.

• Clearandtransparent

communications.

WHAT ARE THEIR PRIORITIES?

• Adiverse,equitableandinclusive

workplace.

• Faircompensation.

• Havingopportunitiestogrow

anddevelop.

• Takingapositiononclimate,

environmentalandsocial

justiceissues.

• Apositiveworkplaceculture

thatempowersthem.

HOW THE BOARD ENGAGES

• BoardmembersareavailableattheAGM

toanswerquestionssubmittedbyemail

inadvanceoronthedayofthemeeting.

• Investorroadshowsheldpost-financial

resultswithourlargestinstitutional

investorsbytheExecutiveDirectorsand

theInvestorRelationsteam.

• Additionalmeetingsheldeitherin-person

orvirtually.InFY24anumberofsuch

meetingswereheldfollowingourinterim

resultsandQ3tradingannouncements,

attendedbytheChiefExecutiveOfficer

andChiefFinancialOfficer.The

ChairmanandSeniorIndependent

Directorarealsoavailabletodiscuss

governancematterswithinstitutional

investorsasrequired.

HOW THE BOARD ENGAGES

• TheChiefExecutiveOfficerproduces

aseriesofregularvideoupdates,

‘UNPLUGGED’,whereheshares

updatesonhisactivitiesandareas

offocuswiththeorganisation.

• Contributionstodiversityandinclusion

initiativesandevents.DuringBlack

HistoryMonth,IjeNwokoriejoinedapanel

eventtoprovideinsightintohowhis

careerhasbeenshapedbyhisidentity.

OnInternationalWomen’sDay,Tara

Alhadeff,RobynPerrissandLynne

Weedallparticipatedina‘firesidechat’to

sharetheircareerjourneyswithourpeople.

• MarketvisitstoParis,LA,Tokyoand

SeouldeepenedtheExecutiveDirectors’

understandingofthosemarketsandkey

findingswerereportedbacktotheBoard.

• OurEmployeeRepresentativeNon-

ExecutiveDirector,RobynPerriss,hosted

ListeningGroupswithemployeesfrom

acrosstheglobalorganisation,anumber

ofwhichwerealsoattendedbytheSenior

IndependentDirector,LynneWeedall.

• TheNon-ExecutiveDirectorsvisitedthe

MadeInEnglandfactoryandofficeat

CobbsLane,enablinginformalengagement

withemployeesbasedatthosesites.

• TheChairoftheRemuneration

CommitteeinvitedtheCompany’s

largestshareholderstoengagewith

herinrespectoftheCompany’s

RemunerationPolicyreview,ahead

ofthenewpolicybeingputtothe

members’voteattheFY24AGM,

forimplementationinFY25in

accordancewiththeCode.

INFLUENCE ON THE BOARD’S

DECISION-MAKING

• InvestorprioritiesinformtheBoard’s

shapingofdividendpolicyanditsoverall

approachtocapitalallocation.InFY24

thisincludedtheimplementationof

theCompany’s£50msharebuyback

programme,conductedbetweenJuly

andDecember2024.

INFLUENCE ON THE BOARD’S

DECISION-MAKING

• Employeefeedbackraisedthrough

therangeofavailablechannelswas

factoredintotheBoard’sdecisions

duringtheyearandcontinuetoinform

itsstrategicpriorities.Theseincluded

decisionsrelatingtotheprioritisationof

keyseniorhires,continuedinvestment

inITinfrastructureandfurther

investmentinourofficeenvironments.

• TheBoard,supportedbytheNomination

andRemunerationCommittees,

oversawanumberofnewhiresand

promotionstotheBoardandGlobal

LeadershipTeamduringtheyear.These

werefocusedondrivingtheevolutionof

seniorleadershiptobettersupportthe

deliveryoftheDOCSstrategyandreturn

thebusinesstogrowth,aswellas

securingsmoothsuccessionprocesses.

Moreinformationaboutthekeysenior

appointmentsmadeduringFY24can

befoundintheNominationCommittee

Reportfrompage108.

OWNERS

OUR PEOPLE

CONSIDERING OUR

STAKEHOLDERS

ThefollowingpagesdescribehowtheBoardengageswithitskeystakeholdersandtheirinfluenceontheBoard’sdecision-making.

Thesepagesshouldbereadinconjunctionwithours172Statementandbroaderstakeholderdisclosuresonpages18to21ofthe

StrategicReport,whichexplainhowthebusinessengagedwitheachstakeholdergroupduringtheyearandcontinuestodoso.

GOVERNANCE

101DR. MARTENS PLC ANNUAL REPORT 2024

OUR STAKEHOLDERS

WHAT ARE THEIR PRIORITIES?

• Innovative,greatquality,durable

products.

• Valueformoney.

• Agreatend-to-endcustomer

experience,beitin-storeoronline.

• Availabilityoftheproducts

theywant.

• Sociallyandenvironmentally

responsiblepurchasingdecisions.

• Aproductwithwhichtheyhave

anemotionalconnection.

HOW THE BOARD ENGAGES

• Consumerinsightsandprogressinkey,

consumer-focusedstrategicprojectsare

reportedtotheBoardthroughupdates

fromtheStrategyteamandChief

ExecutiveOfficer.Theseinformfuture

initiativesandensuretheBoardis

focusedontheconsumerexperience.

• TheExecutiveDirectorsvisitedanumber

ofkeyglobalmarketsoverthecourseof

theyearandreportedbacktotheBoard

ontheirobservationsandactivities.

• OurEmployeeRepresentative

Non-ExecutiveDirector,RobynPerriss,

chairedaretail-focusedemployee

listeningsessionatwhichmembers

ofourstoreteamsdiscussedtopics

includingconsumerpriorities,concerns

andperspectives.Thethemesofthis

sessionwerefedbacktotheBoard.

• Significantfocusontheconsumerat

Boardmeetings,fromregularreports

fromtheMarketingfunctioncovering

ongoingandplannedconsumer

engagementactivitiestodetailed

‘deep-dives’intotheproduct,marketing

andoverallbrandstrategies.

INFLUENCE ON THE BOARD’S

DECISION-MAKING

• ConsumersarecentraltotheBoard’s

discussionsandbuildingcloser,

strongerconnectionswiththemwas

asignificantinfluenceonthestrategic

decisiontoprioritiseDTCoperations.

• Insightsacquiredthroughconsumer

engagementinformtheBoard’s

thinkingaroundmarketingandfuture

pricingstrategies.

• Thedecisiontoapprovesignificant

investmentinanewConsumerData

Platformwasdrivenbytheneedto

improvethebreadthandqualityof

ourconsumerdataandsharpenour

understandingofthem.

• TheExecutiveDirectorsreviewedand

approvedinvestmentsinanumberof

consumer-focusedinitiativesduring

theyear,includingbroadeningour

USAstoreofferthroughnewoutlets,

implementinganewcustomerservice

platforminEMEA,improvingour

websiteinJapanandtriallingrepair

andresaleoperationsintheUSA.

CONSUMERS

WHAT ARE THEIR PRIORITIES?

• Drivingawarenessofbrands

withinmulti-brandedretailtocapture

newconsumers.

• Providingatop-qualityend-to-end

customerexperienceonlineand

instore.

• Clearunderstandingoftheir

consumerbase,offeringarange

ofproductsthatmeettheirneeds.

• Buildinglong-termrelationships.

HOW THE BOARD ENGAGES

• B2Bperformanceisregularlyreported

totheBoardthroughupdatesprovided

bytheChiefFinancialOfficer.

• TheExecutiveDirectorsparticipatein

regionalbudgetmeetingswhichinclude

reviewsoflocalB2Bstrategiesandtake

theneedsandproductchoicesofour

B2Bpartnersintoaccount.

• RegularvisitsbytheExecutiveDirectors

topartner-operatedstores,whichinFY24

includedstoresinParis,Barcelona,NYC,

LA,SeoulandHongKong.

• TheCEOattendsstrategiccountry

meetingsheldwithmembersoftheRetail

leadershipandB2Bteams.InFY24

theseincludedsessionsheldintheUK,

Spain,France,HongKong,Japanand

SouthKorea,LAandNewYork.

INFLUENCE ON THE BOARD’S

DECISION-MAKING

• TheCEOprovidesupdateson

prioritytopics,suchaswholesale

performance,ateachBoardmeeting,

facilitatingdeepdiscussionand

scrutinyofthesamebytheBoard.

• Fulfilmentofwholesalepartnerorders,

sell-throughandinventorylevelsare

reviewedregularlybytheExecutive

Directors.Onoccasionswhendelayed

productionandtransittimeswould

resultinordersarrivinglate,the

ExecutiveDirectorshaveagreedto

additionalcoststoairfreightproducts

toensuredeliverywasontime.

• TheExecutiveDirectorsreviewand

approvedistributor,franchiseand

concessionopportunitiesatmonthly

RealEstateCommitteemeetings,the

activitiesofwhicharereportedtoeach

Boardmeeting.

PARTNERS

102 DR. MARTENS PLC ANNUAL REPORT 2024

OUR STAKEHOLDERS CONTINUED

WHAT ARE THEIR PRIORITIES?

• Long-termcollaboration.

• Responsiblesupplychainassurance

(includingenvironment,modern

slaveryandbroaderhumanrights).

• Opportunitiesforfurthergrowth.

• Sociallyandenvironmentally

responsibleoperations.

• Promptpaymentandfairterms

andconditions.

WHAT ARE THEIR PRIORITIES?

• Theenvironmentalimpactofour

businessandproducts,including

ourclimate-relatedrisksand

opportunities.

• Useofsustainablematerialsand

energyfromrenewablesources.

• Diversity,equityandinclusion.

• Playingapositiveroleinsociety

bothatalocalandgloballevel.

• Thehumanrightsofallpeople

impactedbyDr.Martens’business

activities.

HOW THE BOARD ENGAGES

• TheBoarddiscussesCompany

performanceateachBoardmeetingand

receivedregularupdatesonthesupply

chainduringtheyear,includingthe

workwithsupplierstounlockvalueand

enablegrowth.

• TheBoard,supportedbytheChief

OperatingOfficerwholeadstheGlobal

SupplyChainfunction,reviewsthe

long-termneedsofthesupplychain

networkinthecontextoffuturegrowth

plans,particularlyintermsofproduction

andlogisticalcapacity.TheChief

OperatingOfficerattendedtheBoard

meetinginMarch2024andparticipated

inaBoardmeetingatwhichtheFY25

draftbudgetwasdiscussedatlength.

HOW THE BOARD ENGAGES

• TheBoardreceivesreportsand

presentationsonthekeyinitiatives

consideredbytheSustainability

Committeeandtheactivitiesofthe

Dr.MartensFoundationfrommembersof

theSeniorLeadershipTeamandupdates

fromtheCEO,whochairstheCommittee.

• TheBoardoverseestheCompany’s

broadersustainabilityreportingwithinthe

AnnualReport,throughtheAuditandRisk

CommitteeandtheCFO’smembership

oftheTCFDSteeringCommittee.

• Regular‘horizonscanning’updateson

environmental,socialandgovernance

issuesareprovidedtotheBoardto

ensuretheyareuptodateonregulatory

changesandotherdevelopmentsin

theseareas.

• TheBoardattendedaproductteach-in

toinvestorsatwhichthesustainability

strategyandfuturesustainability

innovationswerepresented.

INFLUENCE ON THE BOARD’S

DECISION-MAKING

• Thefeedback,insightsandoutcomes

fromengagementwithsuppliers

haveasignificantimpactonhowthe

Boardshapesitsstrategicpriorities.

Thisincludesdecisionsrelatingtothe

Group’slogisticalcapacity,determining

thejurisdictionsfromwhichwesource

materialsorbaseourmanufacturing

andtheselectionofourkeyTier1and

2suppliers.

• TheBoardconsiderstheglobal

footprintofmanufacturingand

distributioncapacitytooptimiselead

timesandthespreadofriskacross

thebusinessbyensuringthereisno

over-relianceonanysinglemarket.

INFLUENCE ON THE BOARD’S

DECISION-MAKING

• Thefeedback,insightsandoutcomes

fromthereportsandupdates

describedintheSustainabilityReport

onpages46to74enabletheBoard

tomonitortheimpactofthebusiness

acrossnumerousenvironmental

indicatorsandguideitsdecision-

makingonbroaderclimateand

sustainabilityissues.

• TheExecutiveDirectors,under

delegatedauthorityfromtheBoard,

approvedaninvestmentinathird-party

emissionsmanagementsoftware

platformtofacilitatemoreconsistent

andefficientmeasurementand

monitoringoftheGroup’scarbon

footprintandNet-Zerotarget.

• TheExecutiveDirectorsapproved

authorisedrepairandReWair,

supportingthelong-termvisionof

buildingaprofitablerepairandresale

businessmodel.Readmoreabout

thesemodelsonpages25and61.

SUPPLIERS

ENVIRONMENT

& COMMUNITIES

GOVERNANCE

103DR. MARTENS PLC ANNUAL REPORT 2024

AND HOW STAKEHOLDERS WERE CONSIDERED

In line with our capital allocation framework

the Company executed a share buyback

programme (‘Programme’) in FY24.

• The Board considered capital allocation at

length during Board meetings spanning

FY23 and FY24. Multiple capital allocation

options were considered, taking into account

expert advice from our corporate brokers and

the views of key institutional shareholders

that had been shared with the Board.

• It was decided the Programme would be an

efficient way to return excess capital to

shareholders, as it would increase the proportion

of the total issued share capital owned by

shareholders who retained their shares.

• The Board decided the optimum

consideration to be paid for shares during

the Programme would be £50m, with no

more than £10m of transactions made

monthly, to allow for optimal cash flow

management.

Execution of key decision:

• Authority to execute the Programme was

proposed to shareholders at the FY23

AGM. The resolution passed at a vote

of 99.94% in favour, by shareholders

representing 79.19% of the Company’s

issued share capital.

• The Company entered into an agreement

with Morgan Stanley & Co. International plc

to conduct the Programme.

• The share buyback was conducted between

14 July 2023 to 15 December 2023.

• Approximately 39.9 million shares were

bought back and cancelled, representing a

return of approximately £50m to investors.

Section 172(1) considerations:

The Programme was thought to be an

efficient way to manage the Company’s

capital allocation.

The share buyback increased

shareholders’ overall ownership of the

Company. This also benefitted many of

our employees who are shareholders.

The Programme was conducted in a clear

and transparent manner through

publication on our corporate website,

RNS announcements and Companies

House filings.

The Board considered the Programme

to be for the benefit of its members as

a whole, having given fair consideration

to all members and key stakeholders.

KEY BOARD DECISIONS IN FY24

SECTION 172(1) FACTORS:

The likely consequences of any decision

in the long term.

The interests of our people.

The need to foster business

relationships with our suppliers,

consumers and others.

Our impact on the community

and the environment.

Our desirability to maintain a reputation

for high standards of business conduct.

Acting fairly between members of the

Company.

Attracting and retaining key talent was top of

mind for the Board in FY24. In order to support

the business’s strategic aims and execute the

DOCS strategy, the Board (supported by the

Nomination Committee and Remuneration

Committee) made decisions regarding new

appointments and roles to further strengthen

the leadership team:

Succession:

Giles Wilson was hired as Chief Financial

Officer, commencing his role on 13 May 2024.

Read more about Giles on pages 8 and 93. A

key factor in the Board’s decision to appoint

Giles was his listed company experience, which

will augment the Board’s skillset, improve our

communication and guidance to the market,

provide strong leadership for our global finance

functions and help the business to navigate

through the opportunities and current

challenges on the next phase of our journey

as a listed company.

Graham Calder was recruited as Chief

Technology Officer (CTO) in October 2023,

to lead the business as it continues to build

a stronger Technology function, providing

improved digital experiences for our consumers

and managing our IT investments. Read more

about Graham on page 139.

Bridget Jolliffe was recruited as Chief People

Officer in FY24 and commenced her role in

early FY25. Bridget will lead the evolution of our

People strategy, utilising her over 30 years’

experience across a diverse range of

organisations. Read more about Bridget

on page 100.

Succession, promotion and development

of key talent

Mike Stopforth was promoted from Sales

Director EMEA/General Manager UK to

President EMEA, joining the Global Leadership

Team (GLT). This was a great example of the

Board’s succession planning and desire to

foster and promote internal talent, which has

also proved to be popular with our people.

In endorsing Mike’s promotion to this role,

the Board recognised both the importance

of continuity for the EMEA region and retaining

his significant industry experience. Read more

about Mike on page 100.

New key roles created:

• The Board decided to recruit Ije Nwokorie

as the business’s first Chief Brand Officer

(CBO). This role was created to bring together

our Product, Marketing, and Strategy teams

and to set the overall brand strategy, vision and

direction for the next phase of Dr. Martens’

growth. The appointment of Ije was also

made with a view to succession to the Chief

Executive Officer role. Read more about Ije

Nwokorie’s transition from Non-Executive

Director to CBO and future Chief Executive

Officer from page 108.

• A Global Go-To-Market Director was recruited

to lead on the end-to-end go-to-market

process. The role will lead on ensuring

alignment and collaboration among our

people, partners and suppliers.

Section 172(1) considerations:

Proactive succession planning of the

Chief Executive Officer and new GLT

appointments, including internal

promotions, demonstrate the Board’s

ongoing commitment to developing,

attracting and retaining key talent for

the long term, in an increasingly

competitive market.

The senior leaders recruited during the

year will play a critical role in fostering

close, constructive relationships with

each of our core stakeholder groups

and ensure that their interests remain

appropriately embedded in our day-to-

day operations. The Board continues to

work closely with the Company’s senior

leaders to maintain oversight of the global

business and ensure it is discharging its

duties to the Company and its

stakeholders effectively.

SHARE BUYBACK

KEY HIRES

Stakeholders considered:

104 DR. MARTENS PLC ANNUAL REPORT 2024

OUR STAKEHOLDERS CONTINUED

April 2023

Listening group:

Global Management

Team

July 2023

Listening group:

Northampton factory

and Cobbs Lane office

Listening group:

APAC

Sept 2023

Listening group:

Retail

October 2023

Black History Month

‘In Conversation with..’

event (Ije on the panel)

November 2023

Listening group:

Global Supply Chain

March 2024

‘Fireside chat’:

International Women’s

Month with Robyn

Perriss, Lynne Weedall

and Tara Alhadeff

‘Fireside chat’:

Remuneration with

Lynne Weedall

EMPLOYEE ENGAGEMENT:

KEY EVENTS TIMELINE

How do your employee listening

sessions work?

Each session focuses on a subset of employees invited

at random from a specific business function or region.

This sets some common ground as a basis for open

conversations and helps ensure we cover as many

different areas of the business as reasonably possible.

I strongly believe in keeping the sessions as unfiltered and

impartial as possible. They are safe spaces in which our

employees can discuss the issues that are most important

to them with myself and their peers in an open, honest

way. Prior to each session, I ensure I’m up to speed on

any specific issues, events or other circumstances that

are impacting particular teams so I’m better able to guide

the discussions or drill more deeply into particular points

if necessary.

How does your role as the ‘employee voice’

in the Boardroom work in practice?

As Employee Representative NED, I help ensure that we

as a Board keep ourselves in tune with the ‘mood music’

of the global organisation, take action for our employees in

the areas it is needed most and communicate with them

about the right things, in the right way. My programme of

employee listening sessions has established an important

link between the Board and our employees and provides

opportunities for us to monitor the health of our culture and

see our values in action. I update the Board on the key

themes raised at these sessions and regularly discuss

relevant employee issues directly with the CEO and CFO

during our one-to-one meetings to ensure they are

understood and taken into account.

How does the Board ensure that the priorities

of employees are factored into its decisions?

From a formal perspective, I have a standing item at the

start of each Board agenda where I provide an update on

my activities as Employee Representative to the Board

and discuss the themes and feedback from recent

employee listening sessions. This helps set the scene

for the rest of the Board meeting and provides important

context to our discussions. Separately, the results of our

annual Engagement and Inclusion Survey are discussed

by the Board and help guide our decisions and future

focus areas. Employee feedback is also incorporated into

our Global Bonus Scheme as part of our strategic targets,

to link strong and effective management with the potential

remuneration of our senior leaders.

What were the key themes of your discussions

with employees this year?

We covered a lot of ground, as you can imagine. The

topics we touched on ranged from region or even team

specific to those of significance to the global business.

A common theme was the challenges posed by certain

outdated or inefficient systems, which impact the ability of

our employees to do their jobs effectively. We talked about

what these challenges look like ‘on the ground’ and the

extensive work underway to resolve these issues by

upgrading key capabilities. Our discussions encompassed

numerous other topics, from cost-of-living pressures to

opportunities for career development and ways to

strengthen communication between leadership and the

wider business.

What are some of your reflections on the

sessions this year?

My listening sessions really have been a showcase for our

three values of ‘be yourself’, ‘act courageously’ and ‘show

you care’ in action and continue to reflect a culture where

employees feel safe and supported in raising feedback

and ideas. Participants always speak openly and honestly,

are receptive to and respectful of different perspectives

and ready to offer support and advice to colleagues where

needed. They do not expect us to have all the answers but

do expect clarity in terms of our expectations of them and

the strategic direction and objectives of the business and

to receive assurance that their voices have been heard.

More broadly, as the business navigated its way through

the challenges of FY24 and into a new financial year, the

primary focus of the Board and Senior Leadership Team

has been returning the business to growth. Although this

has reduced the bandwidth available to drive our

employee listening strategy to the extent that we would

have liked, we have continued to move forward in a spirit

of ‘progress over perfection’. In the present environment

it is more important than ever to maintain clear lines of

communication between the Board and employees and

that, where possible, we act on the feedback we receive

at the listening sessions. For example, matters discussed

during the sessions have resulted in follow-up actions

taken by the GLT, while the more routine queries or

requests for clarification are taken away and responded

to by email as soon as possible after each session.

We will continue to operate our programme of employee

listening sessions into FY25 and beyond, ensuring the

Board and business benefit from the rich perspectives and

innovative thinking of our people and that we are able to

understand and respond to the issues that matter to them.

Robyn Perriss

INDEPENDENTNON-EXECUTIVE

DIRECTOR

AMPLIFYING THE

EMPLOYEE VOICE

GOVERNANCE

105DR. MARTENS PLC ANNUAL REPORT 2024

ThefollowingpagesexplainhowtheBoard

seekstoensureourcultureremainsaligned

withourpurpose,toempowerRebellious

SelfExpression,andourDOCSstrategyand

provideanoverviewofthetoolsitemploys

tomonitorthehealthofourcultureonan

ongoingbasis.

Defining our culture

Expressinginafewwordsthemyriad

tangibleandnon-tangiblefactorswhich,

collectively,makeuptheDr.Martensculture

isachallengingproposition,butonewhich

theBoardbelievesisessentialtoestablish

acommonunderstandingwithinthe

organisationofwhoweare,whatwebelieve

inandwhatwestandfor,whichresonates

withemployeesandfromwhichtheir

individualinterpretationscanflourish.

Assuch,wecontinuetodefineourculture

throughthemaxim‘Rebellious Self

Expression’,whichservesasourcollective

shorthandtocapturetheessenceof

Dr.Martensandwhatitrepresentstoour

peopleandconsumers.TheBoardhasalways

beenclearthattherootofRebelliousSelf

Expressionisinourbrandandproducts,from

theoriginal,boundary-pushingbootcreatedin

1960throughtotherangeofconvention-

challengingsubcultureswhichadoptedthe

brandoversubsequentdecadesandwith

whichitcametobeassociated.

WehavefurtherdistilledRebelliousSelf

Expressionintothethreecorevalueswhich

theBoardandemployeesareexpectedto

demonstrate,namely‘be yourself’,‘act

courageously’ and ‘show you care’.

Thesebalancebeliefintrustingourpeople

andrespectingtheirindividualfreedoms

withrecognitionoftheresponsibilitiesthat

comewithoperatingaspartofaglobal

communityandthedutyofcaretheyowe

tooneanother.TheBoardhassoughtto

cultivateanenvironmentforemployees

thatreflectsthesevalues,respectsthem

asindividuals,empowersthemtohavethe

couragetochallengethemselvesandtrusts

themtoconsidertheimpactoftheiractions

onothers.

Takenasawhole,ourcultureandvalues

settheparametersforwhatourconsumers,

employeesandallotherstakeholderscan

expectfromDr.Martensintermsofhowwe

operateasabusiness.

Protecting our culture

TheBoard’scollectiveresponsibilityfor

safeguardingtheDr.Martenscultureisan

exceptionallyimportantaspectofitsrole.It

aimstosetacleartonefromthetopandlead

byexamplethroughstrongcustodianship

overthebrandanddemonstratingourvalues;

promoting,embeddingandprotectingthese

‘yellowthreads’whichuniteallofourpeople

acrosstheglobalbusiness.

TheBoardbelievesthattheExecutiveand

Non-ExecutiveDirectorscontinuetoactwith

utmostintegrityandconductthemselvesin

amannerthatalignswithandpromotesour

culture.Thisviewwassupportedbythe

insightsacquiredfromourFY24internalBoard

Evaluationprocess,undertakeninFebruary

andMarch2024.Thesearenon-negotiable

attributesforanynewBoardorsenior

leadershipappointmentandwerefactoredinto

thebriefsetbytheNominationCommittee

forthesearchforallnewseniorappointments

duringtheyear.Moreinformationaboutthis

canbefoundintheNominationCommittee

Report,frompage108.

TheBoardmonitorsthealignmentofour

purpose,valuesandstrategywithour

cultureinanumberofways.Likemany

businesses,Dr.Martenscirculatesan

annual,onlineEngagementandInclusion

Surveyforcompletionbyallemployees,

whichisakeyelementoftheCompany’s

wideremployeelisteningstrategyand

providesanimportantsnapshotofhow

ourpeopleexperiencelifeatDr.Martens.

TheBoardalsoconsidersarangeofother

importantinputs,includingregularupdates

atBoardmeetingsfromseniorleadership

onparticularfocusareasandinitiatives,

HOW WE ASSESS AND

MONITOR THE DM CULTURE

aswellasthroughournetworkofCulture

championswhoactivelypromoteour

cultureineachofourkeyregions.The

Boardhasalsoidentified‘People,culture

andchange’asaprincipalGrouprisk,

reflectingitsimportancetotheGroupas

awholeanditssignificancetoourability

toeffectivelyexecuteourstrategy.More

informationonourprincipalriskscanbe

foundonpages38to43.

Additionally,RobynPerrisscontinues

toengagewithemployeesthroughher

programmeoflisteningsessionsinher

capacityasourEmployeeRepresentative

Non-ExecutiveDirector.Updatesonthekey

themesfromthesesessionsareprovided

totheBoardateachmeeting,providingit

withanothereffectivemeansofmonitoring

culturethroughanemployeelensand

gainingessentialinsightintothematters

andissuesthatareimportanttothem.More

informationaboutthesessionsRobynheld

duringFY24canbefoundonpage105.

Overall,theBoardisconfidentthatthe

Dr.MartenscultureofRebelliousSelf

Expressioniswell-establishedacrossthe

globalbusiness,thatitstronglyconnects

withandis‘lived’byourpeopleand

continuestosupporttheongoingand

successfuldeliveryofourstrategy.

READ MORE ABOUT REBELLIOUS

SELF EXPRESSION IN THE

STRATEGIC REPORT ON P1 TO 84 AND

46TO74(SUSTAINABILITYREPORT)

MORE INFORMATION ABOUT HOW

WE INVEST IN AND REWARD OUR

WORKFORCE CAN BE FOUND FROM

P116

92%

FY24 Engagement

and Inclusion Survey

response rate

Employee Listening

Groups held in FY24

106 DR. MARTENS PLC ANNUAL REPORT 2024

OUR CULTURE

BE YOURSELF ACT COURAGEOUSLY SHOW YOU CARE

HOW THE

BOARD

MONITORS

CULTURE

ENGAGEMENT AND INCLUSION SURVEY

This assists the Board in monitoring the health

of our culture through understanding how our

employees experience working at Dr. Martens.

This in turn helps shape the Board’s ‘people

priorities’ going forwards, as well as specific

initiatives at Group, function and individual

team level.

THE DOCTRINE

Brings together our key, global policies to form

our employee code of conduct. Presented in

a straight-forward, concise and user-friendly

format, the DOCtrine comprises distinct

sections which also form the basis of our

compliance e-learning programme, enabling

better understanding of how our behaviours

are applied across the business.

COMMUNICATIONS

A variety of internal communications reinforce

our culture and reiterate our values, from

‘Unplugged’ with Kenny videos and Ije Nwokorie’s

‘On Brand’ blog to our ‘Mixtape’ newsletter and

the ‘On Air’ digital employee magazine.

RSE TOOLKIT

The Rebellious Self Expression ‘toolkit’,

available on our employee intranet, brings

together a range of resources to assist our

people in understanding our values and

embedding them within their teams.

MARKET VISITS

As custodians of our global brand, Board

members and the GLT regularly visit our key

markets and engage with our people ‘on the

ground’, strengthening the links between

the regional businesses and promoting our

culture globally.

TOWN HALLS

The CEO, CFO and GLT lead regular,

interactive ‘Town Halls’. These are important

touchpoints in terms of promoting our culture,

bringing our people together from across

the globe to hear and ask questions about

key initiatives, results and events in an

engaging format.

INFORMAL CHANNELS

Important employee or stakeholder feedback

received via informal channels that pertains

to or potentially impacts our culture or values

is reported to the Board or relevant committee

as appropriate.

LEADERSHIP BEHAVIOURS

Our Leadership Framework sets out the key

attributes, mindsets and behaviours needed

to be a successful leader at Dr. Martens and

is embedded into the leadership assessment

and development programmes for senior

employees.

DIVERSITY, EQUITY & INCLUSION

The Nomination Committee monitors the

diversity, equity and inclusion strategy at

Dr. Martens, which determines how we

want to create an inclusive workplace for our

people and is a key element of our culture.

BOARD EVALUATION

The annual Board Evaluation provides the

Board with an opportunity to reflect on all

aspects of its performance, including the extent

to which it has been effective in promoting the

Dr. Martens culture and that the Directors

themselves continue to set a clear ‘tone from

the top’ by demonstrating our values.

REMUNERATION

The Remuneration Committee ensures that

our remuneration philosophy and culture align.

It promotes brand custodianship through

initiatives including encouraging share

ownership via our employee share plan,

while Employee Listening Groups provide

opportunities for our people to learn about and

discuss how executive pay is structured with

our Remuneration Committee Chair.

11 12

EMPLOYEE LISTENING SESSIONS

Employee Representative Non-Executive

Director Robyn Perriss regularly meets with

groups of employees from different regions

and business functions to discuss their

priorities and updates the Board on the

themes of these discussions.

8 9

GOVERNANCE

107DR. MARTENS PLC ANNUAL REPORT 2024

ROLE OF THE COMMITTEE

ToleadtheprocessforappointingDirectors

totheBoardandkeyseniorleadership

positions,ensuringthatappropriate

proceduresareinplaceforthenomination,

selection,trainingandevaluationofDirectors.

COMMITTEE MEMBERSHIP

ThemembersoftheCommitteearethe

Company’sNon-ExecutiveDirectors(the

majorityofwhomareindependent)andthe

ChairoftheBoard.AndrewHarrisonjoined

theCommitteeonhisappointmenttothe

BoardinMay2023,whileIjeNwokorie

steppeddownoncommencinghisnew,

full-timeroleasChiefBrandOfficerin

February2024.TheCommitteewillcontinue

tomonitoritscompositiontoensureit

remainsappropriateandreinforcesour

abilitytoprovideindependentoversight.

EmilyReichwaldwassecretarytothe

CommitteethroughoutFY24.Shewill

besucceededbyKatherineBellauas

secretarytotheCommitteewhenshe

joinsthebusinessinJune.

ThemembersoftheCommitteeandtheir

attendanceatmeetingsduringtheyearare

disclosedtotheright.Fullbiographiesofeach

membercanbefoundonpages92to94.

FOCUS AREAS FOR FY25

• Boardandkeyrolesuccession,with

afocusonmanaginganeffective

onboardingprocessfortheChief

FinancialOfficerandasmoothtransition

toanewChiefExecutiveOfficer.

• Undertakingacomprehensive

assessmentoftheBoard’sskillsrelative

tootherlistedcompanyboards.

COMMITTEE MEMBERS

Number of meetings

attended/max number

could have attended:

LynneWeedall

(CommitteeChair)

6/6

PaulMason 6/6

TaraAlhadeff

5/6

RobynPerriss

6/6

IanRogers

1,2

5/6

IjeNwokorie

1,2

3/4

AndrewHarrison

1,3

5/5

1. Independent.

2. TaraAlhadeff,IanRogersandIjeNwokoriewere

unabletoattendtheNominationCommitteemeeting

on13April2023asitwascalledatshortnotice.

3. Appointed1May2023.

COMMITTEE COMPOSITION

As at 31March

2024

Male 50%

Female 50%

• RecommendpotentialBoardand

seniormanagementappointments

andreappointmentstotheBoard.

• OverseetheinductionsofnewBoard

membersandtheongoingtraining,

asappropriate,fortheBoard.

• Reviewandmakerecommendations

totheBoardinrelationtoBoardand

seniormanagementsuccession

planning,includingensuringplansare

inplaceforanorderlysuccession.

• Overseethedevelopmentofa

diversesuccessionpipelineandthe

Company’spolicyonBoard,senior

managementandworkforcediversity

andinclusion.

• Reviewandmonitortheeffectiveness

oftheCompany’spolicies,objectives

andstrategiesrelatingtodiversity

andinclusion.

Furtherdetailontheroleandremitofthe

Committeecanbefoundwithinitsterms

ofreference,whichareavailableonour

website,www.drmartensplc.com.

KEY RESPONSIBILITIES

FY24 was a pivotal

year at Dr. Martens

from a people

and succession

perspective.

LYNNE WEEDALL

Chair of the Nomination Committee

• Reviewingthealignmentofthediversity

oftheBoardwithouroveralldiversity

aspirationsandtherevisedListingRule

requirements.

• ReviewingtheGroup-wideDiversity,

EquityandInclusionstrategy.

108 DR. MARTENS PLC ANNUAL REPORT 2024

NOMINATION COMMITTEE REPORT

OnbehalfoftheNominationCommittee,

IampleasedtopresentourReportforFY24.

Thepastyearhasbeenapivotalonefor

Dr.Martensfromanexecutivesuccession

perspectiveandabusyoneforthe

Committee,withanumberofchangesin

Boardandkeyseniorleadershippositions

requiringoursupportandoversight.

OurReportsetsoutdetailsofouractivities

duringtheyear,focusinginparticularonthe

implementationofoursuccessionplansto

facilitatethesechanges,aswellashowwe

haveprogressedinthekeyfocusareaswe

identifiedinlastyear’sReport,andour

prioritiesfortheyearaheadandbeyond.

Whilemyintroductoryletterthisyearwill

focusprimarilyontheCommittee’s

extensiveworkonsuccession,ourReport

alsocoverstheinductionprocess

undertakenbyAndrewHarrisonfollowing

hisappointmentasaNon-Executive

DirectorinMay2023,theCommittee’s

considerationsinrespectofBoardand

widerworkforcediversityandtheFY24

BoardEvaluationprocessundertakenin

thefinalquarteroftheyear.

BOARD APPOINTMENT AND

INDUCTION PROCESSES P110

BOARD AND WORKFORCE

DIVERSITY P113

FY24 BOARD EVALUATION P114

CFO succession

AsweannouncedinApril2023,Jon

MortimoreretiredasChiefFinancialOfficer

(CFO)andleftthebusinessattheendof

thefinancialyear.

TheprocessundertakenbytheCommittee

toidentifyandappointanappropriate

successortoJonwasdetailedand

comprehensive.Itencompassedan

assessmentofourinternaltalenttogether

withathoroughsearchoftheexternal

marketconductedbyexecutivesearchfirm

IndependentSearchPartnership(ISP).ISP

identifiedanumberofexcellent,highcalibre

candidatesforourconsideration.The

Committeeestablishedtheparameters

ofthesearchinaclearbrieftoclarifyits

requirementsandguideISPinidentifying

candidateswhoweremostlikelytoreflect

ourcultureandvalues.

TheprocessculminatedintheCommittee’s

decisiontorecommendtotheBoardthat

GilesWilsonbeappointedasournewCFO.

TheCommitteewasimpressedwithGiles’

experienceandwide-rangingskillset

andwewerepleasedtoannouncehis

appointmentinNovember2023.Ilook

forwardtowelcominghimtotheBoardand

workingwithhimoverthecomingyears.

MoreinformationaboutGiles’recruitment

processcanbefoundonpage110.

CEO succession

LaterintheyearthefocusoftheCommittee

turnedtothesuccessionoftheCEO.InApril

2024weannouncedthat,havingledthe

businesssince2018,KennyWilsonwould

besteppingdownasCEObeforetheend

ofFY25,succeededbyIjeNwokorie.This

announcementrepresentedtheculmination

ofourCEOsuccessionplanandfollowed

ourearlierannouncement,inNovember

2023,thatIjewouldjointhebusinessinthe

newlycreatedroleofChiefBrandOfficer

(CBO).Atthatpoint,hesteppeddownfrom

hisroleasaNon-ExecutiveDirector,which

hehadheldsince2021.

AsakeypartofanorderlyCEOsuccession

plan,theCommitteeoversawanextensive

candidatesearchprocess.Wepartnered

withspecialistindependentsearch

consultancyMWMConsultingtofacilitate

thisprocess.MWMprovidedexpert

support,comprisinganexternalsearch,

benchmarkingandevaluationofourinternal

talentpipelinefollowedbyarigorous

assessmentagainstexternalbenchmarks.

Adetailedrolespecificationsettingoutthe

desirableattributes,skillsandexperience

ofprospectiveCEOcandidateswas

developedwithsupportfromMWMand

agreedbytheBoard.OnidentifyingIjeas

theclear,standoutinternalcandidate,we

furtherreviewedhissuitabilityfortherole

alongsideashortlistofhighcalibreexternal

candidatesidentifiedforourconsideration

byMWM.Heundertookafullassessment

byMWM,aswellasbyleadership

consultancyghSMART,toexplorehis

compatibilitywiththeroleingranulardetail.

Throughoutthisprocess,theCommittee

carefullyweighedtherationalesforand

againstappointinganinternalandexternal

candidate.Weappliedsignificantscrutinyto

therelativeopportunitiesandrisksandthe

balanceofskillsneededforthefuture,as

wellasthecomplementaryskillsofother

membersoftheteam,includingthenewly

appointedCFO.

IcanconfirmthatneitherMWMnorISP

haveanyotherconnectionwiththe

CompanyorwithanyindividualDirector,

andarebothsignatoriestothevoluntary

codeofconductforexecutivesearchfirms.

Icanalsoconfirmthat,whileIjewasa

servingmemberoftheCommitteeduring

theperiodinwhichwewerefocusedon

identifyingCEOsuccessorcandidates,he

wasnotpartytoourdiscussionsrelating

tohisowncandidacyorthatofothers.

Theprocessconcludedwithourunanimous

decisiontorecommendIjeasKenny’s

successorasCEOandweweredelighted

whenheconfirmedhisacceptanceofthe

role.WefirmlybelievethatIje’sappointment

representsanexcellentoutcomeforthe

Board,thebusinessandourwider

stakeholders.Overthecomingmonths,

theCompanywillhavethebenefitofboth

KennyandIjecontinuingintheircurrent

rolesofCEOandCBOrespectivelyto

ensurestabilityduringacriticalpeaktrading

periodforthebusiness.

Kennyremainsfullycommittedtoleading

thebusinessintothisnewfinancialyear

andwillworkwithIjeandtheCommittee

toensureasmoothhandoveratthe

appropriatetime.Thiswillbeasignificant

focusareafortheCommitteeoverthe

comingyearandoneonwhichwewillreport

inmoredetailinnextyear’sAnnualReport.

Looking ahead to FY25

WiththesuccessionofourExecutive

Directorsnowsecured,wearere-appraising

thebalanceofskillsandexperienceonthe

Boardtoensureweclearlyidentifyand

understandtheareasinwhichweneedto

enhanceourskillsmix.Tothatend,when

weappointedMWMtosupportourworkon

CEOsuccessionwealsorequestedthatthey

undertakeanassessmentoftheBoard’s

relativestrengthsandareasrequiringfurther

development.InFY25,wewillreviewthis

output,evaluatetheappropriateskillsmixfor

thefutureandconsideroptionstofurther

augmenttheBoardinareaswhereadditional

skillsmaybeneeded.

InFY25,seniorsuccessionwillremaina

centralitemontheCommittee’sagenda,

bothintermsofsupportingKennyand

IjewiththeCEOtransitionprocessand

continuingtoensurethattheBoardand

GLTareproperlystructuredandequipped

todeliverourstrategyanddrivethe

businessforwards.

LYNNE WEEDALL

CHAIROFTHE

NOMINATIONCOMMITTEE

29May2024

GOVERNANCE

109DR. MARTENS PLC ANNUAL REPORT 2024

BOARD APPOINTMENT PROCESS

The timeline below summarises each stage of the process

which concluded with the Nomination Committee’s

recommendation to appoint Giles Wilson to the Board

as CFO. The Committee is satisfied that the process

described below was appropriately thorough.

April 2023

STAGE 1: BUILDING THE BRIEF

TheBoardinstructedtheNominationCommittee

toproceedwithestablishingabriefsettingout

theattributes,skillsandexperiencethatthe

Boardrequiredand,fromthere,tooverseethe

searchprocess.

Thecriteriafortheprospectivenewappointment

setoutinthebrieffocusedonidentifyingfinance

leaderstohelpleadthebusinesseffectively

throughitsnextphaseandincludedstrong,prior

publicmarketsandglobalbrandsexperienceas

wellasexperienceasaChiefFinancialOfficer

inaUKlistedbusiness.

April 2023 – July 2023

STAGE 2: CANDIDATE SEARCH

Oncethebriefwasfinalised,theCommittee

engagedexecutivesearchfirmIndependentSearch

Partnershiptoundertakethesearchforcandidates

matchingitskeycriteria.Adiverseshortlistof

candidateswasidentified,withregularupdatesfed

backtotheCommitteeviatheCommitteeChairfor

reviewandfurtherconsideration.Interviewswere

conductedatthesametimeascontinuingtosearch

forcandidates.

TheCompanyconfirmsthatIndependent

SearchPartnershiphasnootherconnection

withtheindividualDirectorsortheCompany.

Composition and succession

TheCommitteereviewstheBoard’s

compositiontoensurethatitsmixofskills

andexperienceremainsappropriatein

leadingthebusinesstodeliveritsstrategy

andthatitcontinuestoalignwiththe

Company’scultureandvalues.ABoard

skillsmatrixiskeptunderreviewbythe

Committeeandisusedtoguideandinform

successionplansandthecriteriafor

prospectiveappointments.Thiswasmost

recentlyevidentintheprocessculminating

intheappointmentofAndrewHarrisonas

theCompany’snewestNon-Executive

DirectorearlyinFY24,whichwasdriven

bytheidentificationofaneedtobolsterthe

Boardwithgreaterlistedcompanyand

internationalconsumergoodsexperience.

Asmentionedintheintroductoryletterto

thisReport,seniorsuccessionwillremaina

keyareaoffocusfortheCommitteeduring

FY25,particularlyinrelationtomanaging

thetransitionstoanewCFOandCEOand

reviewingplansforseniorrolesuccession

toensuretheyremainrobust.

Director induction process

AllnewlyappointedBoardDirectorsand

GLTmembersundertakepersonalised

inductionprogrammesonjoiningthe

business.Thesearefacilitatedbythe

CompanySecretaryandaredesignedto

bringthemuptospeedontheCompany’s

businessoperations,strategy,culture

andgovernanceasquicklyaspossible.

Whileeachprogrammeistailoredtothe

needsoftheindividual,inductionstypically

incorporatemarketorsitevisits,one-to-one

meetingswiththeGLT,otherkeysenior

leadersandexternaladvisers.Newmembers

oftheGLTwillalsobeinvitedtopresenttheir

initialobservationsandreflectionstotheBoard

afterapproximatelythreemonthsin-role.

AllnewBoardDirectorsandGLTmembers

haveaccesstothesupportandadviceofthe

CompanySecretaryandareencouragedto

continuetomeetwithmembersofthewider

SeniorLeadershipTeampost-induction

toestablishstrongworkingrelationships,

providesupportandshareexperience.

Effectiveness and independence

of the Chair of the Board

TheBoardconfirmsthat,inaccordancewith

Provision9oftheUKCorporateGovernance

Code,BoardChairPaulMasonwas

independentonhisinitialappointmentto

theBoardin2015.Italsonotesthat,when

assessedagainsttheindependencecriteria

setoutinProvision10oftheCode,Paul

wasnotconsideredindependentonthe

Company’sadmissiontolistingin2021.

PaulhasheldvariousroleswithintheGroup,

includingactingasExecutiveChairmanfor

aperiod.Nevertheless,theBoardremains

confidentinPaul’scontinuedleadership

oftheBoardonthebasisthathisextensive

knowledgeoftheGroup’sbusinessand

significantretailandconsumerbrand

experienceareinthebestinterestsofthe

Companyandshareholdersasawhole.

ItconfirmsthatPaulcontinuestooperatein

hisroleeffectively,demonstratingobjective

judgementandleadingbyexamplein

promotingahealthycultureofopen,honest

debateintheBoardroom.

BRIEF SEARCH

110 DR. MARTENS PLC ANNUAL REPORT 2024

NOMINATION COMMITTEE REPORT CONTINUED

CASE STUDY: INDUCTING A NEW NED

May 2023 – October 2023

STAGE 3: REVIEW, ASSESSMENT AND INTERVIEW

TheCommitteereconvenedonseveraloccasions

todiscussprogressandreviewtheprofilesofthe

candidateswhomostclearlyreflectedthecriteriaset

outintheinitialbrief.

Beforeanyrecommendationtoappointaparticular

individualcouldbemadetotheBoard,meetingswere

arrangedbetweentheshortlistedcandidatesand

membersoftheCommittee,theretiringCFOand

theCEO.Theshortlistedcandidatesalsoundertook

adetailedassessmentprocesswithspecialist

leadershipconsultancyghSMARTtofurthergauge

theircompatibilitywiththeCompany.

November 2023

STAGE 4: OFFERING THE ROLE

TheCommitteewasunanimousintheviewthat

GilesWilsonwastherightcandidatefortherole

ofCFO,possessingrecentexperienceasbotha

ChiefFinancialOfficerandChiefExecutiveOfficer

atlarge,listedbusinessesandastrongtrackrecord

ofdrivinggrowthatotherorganisations.

TherolewasformallyofferedtoGilesandaccepted

shortlyafterwards,withtheCompanyannouncing

on14NovemberthatGileshadbeenappointedto

theroleofCFOtostartinFY25.Gilesformally

joinedthebusinesson13May2024.

ASSESS OFFER

OnformallyjoiningtheBoardinMay2023,

Andrewcommencedarobustandvaried

inductionprocessaimedatfamiliarisinghim

withtheintricaciesofthebusinessandourkey

stakeholders.Overseveralmonths,Andrew

participatedinaseriesofmeetingsandsite

visits,describedtotheright.

GILES WILSON

CHIEF FINANCIAL OFFICER

ANDREW HARRISON

INDEPENDENT NON-EXECUTIVE DIRECTOR

• Introductorymeetingswithfellow

Boardmembers,theGlobal

LeadershipTeamandotherkey

membersofseniorleadership.

• VisitstotheDr.Martensstorein

Leeds,accompaniedbyourChair,

PaulMason,andtoaselectionof

wholesaleretailersintheregion,

providinginsightsintoourcore

retailoperations.

• AvisittoourCobbsLanefactory

andoffice,providingopportunities

toengagewithemployeesat

bothsitesandlearnaboutthe

end-to-endproductionprocess.

• Participationinanemployee

listeningsessionfacilitatedby

RobynPerrissandLynneWeedall.

• AmarketvisittoItalyalongsideour

EMEAPresident,MikeStopforth,

gainingvaluableinsightsintolocal

marketoperations.

Additionally,onjoiningthebusiness

Andrewwasprovidedwithasuiteof

companydocumentsintheformof

reports,pastBoardandCommittee

papersandnumerousinternal

policiesandproceduraldocuments,

toassisthiminbroadeninghis

understandingofourinternal

frameworks,valuesandculture.

GOVERNANCE

111DR. MARTENS PLC ANNUAL REPORT 2024

Board gender and ethnic diversity

TheCommitteeismindfulofandsupports

therecommendationsoftheFTSEWomen

LeadersReview,theParkerReviewandthe

diversitytargetssetoutintheListingRules.

ThenumericaldatatablestheCompanyis

requiredtodisclosepursuanttoListingRule

9.8.6R(9)canbefoundonpage91.

Asat31March2024,theBoardmettwoof

thethreetargetssetoutinLR9.8.6R(9).

LynneWeedallcontinuestoserveasSenior

IndependentDirector,thereforetheBoard

continuestomeetthetargettohaveatleast

onewomaninaseniorBoardposition.With

thedeparturesofIjeNwokorieandJon

MortimorefromtheBoardinFebruaryand

March2024respectivelyandGilesWilson

notjoiningthebusinessuntilMay,theBoard

alsobrieflyexceededthe40%targetfor

femalerepresentationasattheCompany’s

referencedateof31March.Atthispoint,

womencomprised43%oftheBoard.

However,withGileshavingjoinedthe

businesson13May2024,womennow

comprise38%oftheBoard,slightlybelow

theListingRulestarget.Thisisunchanged

fromthepositionasat31March2023and

atechnicalimprovementonthatwhich

appliedforthemajorityoftheyearunder

review,throughoutmostofwhichwomen

comprised33%ofourBoard.

AlthoughoutsidethescopeoftheListing

Rulestargets,theBoardnotesthateach

ofitsprincipalcommitteesischairedbya

femaleBoardmember,withLynneWeedall

chairingtheNominationandRemuneration

CommitteesandRobynPerrisschairing

theAuditandRiskCommittee.Robyn

alsocontinuestoplayanimportantrole

astheCompany’sDesignatedEmployee

RepresentativeNon-ExecutiveDirector.

Intermsofethnicdiversity,followingIje’s

departurefromtheBoardjustpriortothe

yearendtheBoardnolongermeetsthe

targetforatleastonemembertobefroma

minorityethnicbackground.However,the

Boardwillonceagainmeetthistargetwhen

IjerejoinsitasCEObeforetheendofFY25.

Intheinterimperiod,Ije’senergy,insights

andexpertise,fromwhichtheBoardhas

beenfortunatetodirectlybenefitduringhis

tenureasaNon-ExecutiveDirectorand

willagainonhisappointmentasCEO,will

remaindevotedfullytotheGLTandthe

globalbusinessthroughhisnewroleas

ChiefBrandOfficer.

THE BOARD’S POLICY ON DIVERSITY

TheBoardiscommittedtoensuring

thatdiversity,equityandinclusivity

remainamongitscoretenetsand

underpinallfutureappointments

totheBoard,GLTandthe

membershipsoftheAuditandRisk,

RemunerationandNomination

Committees,beitdiversityofgender,

background,heritage,sexualityor

anyofthemanyaspectsofidentity

thatmakeindividualsunique.Further,

itcontinuestosupportthebusiness

infosteringaculturethatenables

talenttoprogressatDr.Martens

irrespectiveofanyofthesefactors.

AllrecommendationsforfutureBoard

andseniorleadershipappointmentsare

madeonmeritfollowingrigoroussearch

andrecruitmentprocessesthatfocus

onindividualspossessingspecific

skillsetsandexperiencethathavebeen

identifiedasessentialforthebusiness

toachieveitsstrategicambitions.This

ensurestheappropriatebalanceof

skillsandexperienceacrossoursenior

leadership,theBoardandtheAuditand

Risk,RemunerationandNomination

Committeesismaintainedorimproved.

TheBoardismindfulofthe

recommendationsofboththeParker

andFTSEWomenLeadersReviews

andtherevisedtargetsand‘complyor

explain’reportingrequirementssetout

intheListingRulesanditremainsthe

Board’sintentiontomeetorexceed

thesetargetsonanongoingbasis.

TheBoardispleasedtohavemet

theprescribedtargetsrelatingtoits

ethnicdiversityandtheappointment

ofawomantoatleastoneofthe

‘bigfour’BoardrolesofChair,Chief

ExecutiveOfficer,ChiefFinancial

OfficerorSeniorIndependent

Director.WhiletheBoarddoesnot

currentlymeetthe40%targetfor

femalemembership,itcontinues

tobetheintentionandaspiration

oftheBoardtodoso.Thiswillbe

animportantfocusareaforthe

NominationCommitteeduringFY25.

TheBoardisclearthatadherenceto

theprinciplesoutlinedabovefacilitates

broader,richerdebateandultimately

resultsinbetterdecision-makingin

theinterestsofthebusiness,the

Company’sshareholdersandwider

stakeholdergroups.

112 DR. MARTENS PLC ANNUAL REPORT 2024

NOMINATION COMMITTEE REPORT CONTINUED

NOMINATION COMMITTEE

ACTIVITIES DURING FY24

April 2023

• Reviewed the Board’s skills matrix.

• Reviewed the Company’s

process for succession in key

roles, focusing in particular on

the Chief Financial Officer.

• Reviewed the specification

for a successor to the Chief

Financial Officer and agreed

a set of non-negotiable and

desirable attributes for

prospective candidates.

May 2023

• Reviewed progress of the

CFO search and discussed

potential successor candidates

in the context of the Board’s

skills matrix.

July 2023

• Reviewed and discussed the list

of potential CFO candidates and

agreed next steps.

September-November

2023

• Discussed the CFO shortlist

and identified Giles Wilson as

the Board’s preferred candidate.

• Agreed to extend Jon Mortimore’s

contract through to the end of

FY24 to secure continuity through

to the end of the financial year.

• Discussed GLT succession and

agreed the appointments of the

Interim Chief Technology Officer

and Chief Brand Officer.

• Reviewed an update on the global

DE&I strategy.

March 2024

• Discussed the Board’s skills

matrix and considered the

capabilities required for the

Company’s next phase of

development.

• Reviewed Board and key role

succession processes and plans,

including for the CEO.

• Reviewed the Committee’s

effectiveness as part of the internal

FY24 Board Evaluation process.

• Reviewed the Committee’s terms

of reference.

April 2024 (post-FY24)

• Recommended Ije Nwokorie as

CEO successor.

TheCommitteewillensurethatthe

recommendedtargetsrelatingtogender

andethnicdiversityontheBoardremain

centralfactorsinitsconsiderationsin

respectoftheBoard’scompositionand

long-termsuccessionplanninggoing

forwards.Itfurtherconfirmsthatitwillalso

continuetoensurethatBoardandsenior

recruitmentprocesseswillbeconducted

inamannerwhichencouragesandinvites

adiversemixofcandidatesintermsof

gender,socialandethnicbackgroundsas

wellascognitiveandpersonalstrengths.

TheBoard’spolicyondiversityissetout

onpage112,opposite.

Diversity in the workforce

Thediversityofthewiderleadershipteamis

monitoredwithreferencetodataextracted

fromtheCompany’ssecureHRinformation

system,Dayforce.Allemployeesareable

tousethissystemtoprovideinformation

relatingtotheiridentityandtheirindividual

diversitydata,includinggenderidentityand

ethnicbackground,shouldtheywishtodo

so.ACompany-wide‘Self-ID’campaignled

bytheDiversity,EquityandInclusionteam

wasundertakenearlyinFY24toraise

awarenessofthistoolandencourage

employeestoprovidetheirinformation,

assistingthebusinessinbuildingamore

completepictureofthediversityofits

workforce.Allinformationprovidedinthis

mannerisconfidentialandmanagedinline

withtheCompany’sdataprotectionand

privacyobligations.

Thereportingtablessettingoutthespecific,

numericaldiversitydataintheformat

prescribedbyListingRule9.8.6R(10)can

befoundinthe‘Ataglance’sectionon

pages90and91.

Thedataindicatesthat,asatthereference

dateof31March2024,70%ofourGlobal

LeadershipTeam(GLT)excludingthe

ExecutiveDirectorsweremenand30%

women.Thedatarelatingtothenextlayer

ofseniormanagementindicateaneven

splitof50%men(57%inFY23)and50%

women(41%inFY23),withnoemployees

identifyingasnon-binaryorpreferringto

self-describe(2%inFY23).Acrossthe

globalworkforce(andbasedonaresponse

rateof99%),63%(2,202employees)

identifiedasfemale,33%(1,140

employees)maleand3%(115employees)

non-binary,with1%(21employees)

preferringtoself-describe.

Morebroadly,thebusinesscontinuedto

makeencouragingprogressduringtheyear

towardsitsdiversityaspirationsforthe

globalworkforce.Moreinformationonthis

canbefoundintheSustainabilityReport

onpages68and69.

Committee effectiveness

TheeffectivenessoftheCommitteewas

assessedaspartoftheinternalBoard

Evaluationprocessundertakeninthe

latterpartofthefinancialyear.

Fromtheratingsandfeedbackprovided

throughtheBoardquestionnairesandthe

subsequentmeetings,itwasconcluded

thattheCommitteecontinuedtooperate

effectively.Continuedfocusonsuccession

inlightoftherecentseniorleadership

changesandontheBoard’sskillsmixwere

highlightedasopportunitiesandwillform

twokeyprioritiesfortheCommitteeinthe

yearahead.

The Committee will continue

to ensure that diversity and the

recommended targets in respect of

gender and ethnic diversity are at

the forefront of its considerations

and as part of its long-term Board

succession planning.

GOVERNANCE

113DR. MARTENS PLC ANNUAL REPORT 2024

BOARD EVALUATION

Approach to the FY24 Board Evaluation

TheBoardundertookaninternalBoard

EvaluationinFY24,anoverviewofwhich

issetoutonthefollowingpages.Since

thiswasthesecondinternalevaluation

conductedinsuccession,theBoardintends

thatitsnextevaluationinFY25willbe

externallyfacilitated,inlinewithBoard

policyandthebestpracticerequirements

oftheUKCorporateGovernanceCode

toundertakeexternallyfacilitatedreviews

everythreeyears.

TheBoardisclearthat,regardlessof

whetheritisexternallyorinternally

facilitated,theannualBoardEvaluation

isanimportantopportunityfortheBoard

toassesswhetheritwaseffectivein

The following pages provide insight into the Board’s evaluation

of its effectiveness and performance in FY24.

dischargingitsdutiesoverthecourseof

theyear,implementinganyspecificactions

recommendedthroughfeedbackprovided

duringtheevaluationandidentifyingareas

offocusfortheyearahead.

TheBoardalsorecognisesthatmonitoring,

refiningandimprovingitseffectiveness

isacontinuousprocess.Itdoesthisby

takingtimetoreflectonthequalityofits

conversations,thestrengthofworking

relationshipsbetweenindividualBoard

membersandbetweentheBoardandthe

Company’sSeniorLeadershipTeamand

consideringwhetheritsbalanceofskills

andexperienceremainsappropriatewhen

measuredagainstitsskillsmatrix.

PROGRESS UPDATE:

FY23 EVALUATION

TheBoardmadeprogressona

numberofareashighlightedas

opportunitiesforimprovementin

lastyear’sBoardEvaluation.

Successionplanninghadbeenidentified

asanareaonwhichtheBoardshould

increaseitsfocusandthiswasthecase

inFY24,withtheBoardandNomination

Committeeoverseeingthesuccession

oftheCFOandseveralkeyGLTroles.

Additionally,theBoardfulfilledits

commitmenttobroadeningitsmixof

skillsandexperiencefollowingthe

smoothinductionofAndrewHarrison.

FY24 BOARD EVALUATION TIMELINE

November 2023

STAGE 1: DESIGN

The Board discussed the intended

approach to the FY24 Board Evaluation

and agreed with the Company

Secretary’s proposal that it be facilitated

internally and conducted in a manner

that was broadly in line with FY23 and

comprised the following elements:

• Questionnaire mixing quantitative

ratings and incorporating qualitative

feedback.

• One-to-one meetings between

each Non-Executive Director and

the Chairman to discuss individual

performance and feedback points.

• Non-Executive only session

chaired by the SID.

• Full Board discussion to explore

the feedback from the meetings

and questionnaires and agree

future priorities.

February 2024

STAGE 2: QUESTIONNAIRE

Each Board member was asked to

provide a rating on range of questions

relating to their effectiveness during

FY24. These were organised under the

categories ‘Board processes’, ‘Board

culture’, ‘strategy’ and ‘oversight’.

They were also asked to provide

comments on their assessment of

the Board’s strengths in those areas

and any opportunities for future

improvements. The topics explored

through the questionnaires covered:

• Effectiveness of Board succession

planning.

• Appropriateness of overall skills

and knowledge mix.

• Quality of debate, discussion

and decision-making.

• Focus on key strategic issues.

• Degree of interaction and

engagement between the

Board and wider business

• Effectiveness in identifying and

managing key business risks.

Purpose

TheBoard’sannualevaluation

providesanimportantopportunity

fortheDirectorstoreflectontheir

performanceoverthepreviousyear,

bothindividuallyandcollectively,and

assesstheireffectivenessinfulfilling

theirstatutorydutiesintheinterestsof

theCompany’smembersasawhole.

Itisalsoanessentialtoolforidentifying

opportunitiestofurtherimprovethe

Board’seffectivenesswhile

acknowledgingitsexistingstrengths.

Thetimelinetotherightsummarises

eachstageintheprocessundertaken

inFY24,frominitialconsiderations

relatingtothedesignthroughtothe

Board’sreflectionsandfeedback.

114 DR. MARTENS PLC ANNUAL REPORT 2024

NOMINATION COMMITTEE REPORT CONTINUED

March 2024

STAGE 3: MEETINGS

• One-to-one meetings between

each Non-Executive Director and

the Chair provided an opportunity

to expand on the feedback provided

in their questionnaire and reflect on

their own contributions to the Board

over the course of the year.

• The Senior Independent Director

then chaired a session with the

Non-Executive Directors to evaluate

the effectiveness of the Chair and

Executive Directors and to discuss

any further outputs or feedback from

the questionnaires that had not been

previously considered.

• The Board reconvened for a final

discussion at its meeting in March

to review its progress over the year,

consider any recommendations

for future areas of focus and the

most pressing opportunities

for improvement.

STAGE 4: FEEDBACK

Basedontheinformation

providedthroughthe

questionnairesandthefeedback

fromthesubsequentmeetings,

theCompanySecretary

compiledareportsettingout

mainfindingsandinsights.This

wasagreedwiththeChairand

circulatedtotheBoardtoinform

andguidethefinaldiscussion,

withallBoardmemberspresent,

attheBoardmeetinginMarch.

ThisdiscussionprovidedBoard

memberswithanopportunityto

sharetheirfinalreflectionson

thechallengesandsuccesses

ofFY24andagreetheareason

whichitshouldfocustodrive

continuedimprovementsinits

effectivenessinFY25.These

includedaholisticreviewofits

skillsmatrixandcreatingspace

formoreregularexposuretothe

GLTandleadershiptalentfrom

thewiderbusiness.

OBSERVATIONS

ThefeedbackreceivedfromtheBoard

waspositiveoverall.Thefeedback

providedbyindividualBoardmembers

highlightedanumberofstrengthsaswell

asopportunitiestodrivefurther

improvements,includingthefollowing:

• Strength:Boarddiscussionscontinue

tobesubstantiveandfocusedonthe

rightstrategicpriorities.

• Opportunity:tosharpenfocuson

pushingthebrandagenda,improved

financialforecastingandinterrogating

identifiedproblemareas.

• Strength:anexperiencedand

open-mindedBoardwithavaried

skillsetandrangeofperspectives.

• Opportunity: toincreasetimespent

withseniorleadershipandkeytalent

tobridgethegapbetweenBoard

discussionsandbusinessoperations.

• Strength:diligentlychairedBoard

meetingssupportedbywellthought

throughagendasandcomprehensive,

highqualitypapers.

• Opportunity:continuedfocus

onimprovingsuccessionprocesses

inkeyroles.

Setagainstabackdropofarecent

IPOandanewlyestablishedBoard,

theFY22evaluationcombinedafull

externalassessmentbyexternal

consultancyghSMARTandan

internalprocess,ledbytheChairof

theBoardandCompanySecretary,

toexplorewhethertheBoardwas

focusedontherightpriorities,

comprisedtherightindividualsand

hadestablishedacultureoftrust,

debateandchallenge.

FY22

HYBRID EVALUATION

THE BOARD’S EVALUATION CYCLE: FY22 TO FY24

FY25 – EXTERNAL EVALUATION

TheBoard’sinternalevaluationin

FY23soughttobuildonthethemes

oftheextensiveprocessundertaken

inthepreviousyear.Itfocused

ontheBoard’sassessmentofthe

progressithadmadeinbroadening

itsskillset,includingthroughits

searchforanewNon-Executive

Director(culminatinginAndrew

Harrison’sappointmentinMay

2023),anddevelopingitsoverall

maturityasaPLCboardoverthe

courseoftheyear.

FY23

INTERNAL EVALUATION

Thisyear’sprocesswasframedin

thecontextofachallengingyearfor

thebusiness.Itcoveredageneral

reviewoftheBoard’seffectiveness

indischargingitsdutiestothe

Company,focusinginparticularon

clarifyingitsestablishedstrengthsand

identifyinggapsandopportunitiesfor

developmentintoFY25.Anoverview

ofthisissetoutinthesectionbelow.

FY24

INTERNAL EVALUATION

GOVERNANCE

115DR. MARTENS PLC ANNUAL REPORT 2024

COMMITTEE MEMBERSHIP

TheCommitteecurrentlycomprisesLynne

Weedall(Chair),RobynPerrissandAndrew

Harrison,allofwhomareIndependent

Non-ExecutiveDirectorsandprovidea

balanceofskillsandexperience.Andrew

HarrisonjoinedtheCommitteeon1May

2023andsodidnotattendtheApril2023

meeting.TheApril2023meetingwas

attendedbyIanRogerswhowasa

CommitteememberthroughoutFY23,

steppingdownfromtheCommitteeon

1May2023.

ThefulltermsofreferenceoftheCommittee

areavailableontheCompany’scorporate

websiteatwww.drmartensplc.com.Full

biographiesofeachmembercanbefound

onpages92to94.

TheattendanceofCommitteemembersat

meetingsduringtheyearisdisclosedbelow.

FOCUS AREAS FOR FY25

TheCommitteeisplanningtoundertake

anumberofkeyactivities,andhave

discussionsinthecourseofthecoming

year,onarangeofmattersincluding:

• ImplementingtheRemunerationPolicy

appropriatelyandcautiously,ina

challengingexternalenvironment,for

thefirstyearofthenewpolicyperiod.

• Approvingremunerationarrangements

forappointmentstotheExecutiveGroup,

includingCEOsuccession.

• Monitoringshareholdingofthe

ExecutiveGroupagainstshare

ownershiprequirements.

• Reviewingremunerationarrangements

forthewiderworkforce.

• Reviewingperformanceand

effectivenessoftheCommittee,aspart

oftheannualBoardEvaluationprocess.

COMMITTEE MEMBERS

Number of meetings

attended/max number

could have attended:

LynneWeedall

(Committee Chair)

6/6

RobynPerriss 6/6

IanRogers

1/1

AndrewHarrison

5/5

1. Includesanextraordinarymeetingheldon

23June2023.

2. IansteppeddownfromtheCommitteeon

1May2023.

3. AndrewjoinedtheCommitteeon1May2023.

COMMITTEE COMPOSITION

As at 31March 2024

Male 33.33%

Female 66.67%

• EstablishandagreewiththeBoard

theRemunerationPolicyforthe

ExecutiveDirectors,theCompany

Secretary,theGlobalLeadership

Team(GLT)(together,the‘Executive

Group’),theChairoftheBoardand

anyothersenioremployeesasthe

Boardmaydetermine.

• Determinetheindividualremuneration

packagesoftheExecutiveGroup,the

ChairoftheBoardandrelevantsenior

employeeswithinthetermsofthe

agreedRemunerationPolicy.

• Monitortheremunerationstructures

andoveralllevelsofremuneration

oftheExecutiveGroupandrelevant

seniormanagementandmake

recommendationstotheBoard

whereappropriate.

• Overseetheremunerationofthewider

Dr.Martensworkforceandensure

thatourpolicyfortheseniorteam

isconsistentlystructuredandalso

ensuresalignmentbetweenincentives

andCompanycultureandvalues.

• OverseetheoperationoftheGroup’s

shareplans.

In the context of

a challenging year,

the Committee has

sought to act with

restraint within

the framework of

the Policy.

LYNNE WEEDALL

Chair of the Remuneration Committee

KEY RESPONSIBILITIES

116 DR. MARTENS PLC ANNUAL REPORT 2024

REMUNERATION COMMITTEE REPORT

DEAR SHAREHOLDER,

OnbehalfoftheRemunerationCommittee,

IampleasedtointroducetheDirectors’

RemunerationReportfortheyearending

31March2024.

ThisReportisdividedintothreesections:

• ThisAnnualStatement,whichsummarises

theworkoftheCommitteeandour

approachtoDirectors’remuneration.

• TheRemunerationPolicysection,

whichdetailstherevisedPolicy.Thefull

RemunerationPolicycanbefoundonpages

120to123ofthisAnnualReport(andis

alsoavailablehere:www.drmartensplc.

com/investors/results-centre/).

• TheAnnualReportonRemuneration,

whichsetsouttheremuneration

outcomesforthefinancialyearended

31March2024andtheproposed

implementationoftheRemuneration

Policyfortheupcomingyear.

TheRemunerationPolicywillbeputto

shareholdersforabindingvoteattheAnnual

GeneralMeeting(AGM)tobeheldon11July

2024.ThisAnnualStatementandtheAnnual

ReportonRemunerationwillbeputtoan

advisory(non-binding)voteattheAGM.

Looking back

COMPANY PERFORMANCE

FY24hasbeenadisappointingyearandagain

wefacedanumberofchallenges.These

includedadifficultconsumerenvironment

intheUSA,withwidespreadcautionfrom

wholesalecustomers,andincreased

depreciationandamortisationchargesasa

resultofourongoinginvestmentprogrammes.

Weendedtheyearwithprofitbeforetax(PBT)

of£93.0mandrevenueof£877.1m.

REMUNERATION PAYABLE IN RESPECT

OF FY24

Base salaries and fees

AsdisclosedintheFY23AnnualReport,

theExecutiveDirectorsreceiveda2%

increaseinsalarywitheffectfrom1April

2023.Inaddition,Non-ExecutiveDirectors’

feelevelswerealsoincreasedby2%.In

bothcases,theseincreaseswerehalfthe

averageincreaseoftheUKworkforce.

FY24 annual Global Bonus Scheme

outcome

EmployeesthroughouttheCompany,

whetherinourstores,distributioncentres,

factoryoroffices,participateinabonus

scheme.Tofosteralignmentacrossthe

business,inFY24,theExecutiveDirectors’

annualbonus(GlobalBonusScheme,or

GBS)continuedtobroadlymirrorthatofthe

widerworkforcewithallparticipantsworking

towardsthesameglobalPBTtargetsthat

appliedacrosstheGroup.Alongsidethe

GBS,ouremployeebonusplanshavethe

abilitytorewardexceptionalperformance,

ensuringthatouremployeesacrossthe

worldareallalignedtowardsoursingle

globalgrowthambitions.

FortheExecutiveDirectors,theGBS

comprisedafinancialmetricofPBTwith

aweightingof75%andthreeequally

weightedstrategicobjectiveswithacombined

weightingof25%.Thesethreestrategic

objectiveswerefocusedonincreasing

employeeengagement,acceleratingour

sustainability(ESG)journey,andgrowingour

brandhealthandequity.Thesereflectour

passionandfocusonculture,sustainability

andbeingbrandcustodians.

Wesetstretchingtargetsforourselves

anddidnotmeetthem.OurPBTresultof

£93.0mwasbelowtheminimumthreshold

of£149.0mandthereforetheExecutive

Directorsdidnotreceiveabonus.

Withregardtothestrategicobjectives,our

sustainability(ESG)targetsweremetin

full,reflectingoureffortduringtheyearto

progressoursustainabilityagenda.Wewere

notabletomeetthethresholdlevelof

performanceforourotherstrategicobjectives

withtheresultthatoneoutofthreetargets

wasmetinaggregate.Asaresult,the

formulaicoutcomeoftheGBSis8.33%of

maximum.Consideringthedisappointing

financialperformance,ourExecutiveGroup

havetakenthedecisiontowaivetheir

entitlementtoabonusinrespectoftheFY24

strategicobjectives.

Long Term Incentive Plan (LTIP) award

Theawardgrantedin2021atadmissionis

duetovestinJune2024.Theawardhastwo

performancemeasures:EPS(compound

annualgrowthoverthreeyears),andrelative

TotalShareholderReturn(TSR)(vs.FTSE

350excludinginvestmenttrusts).The

Company’sCAGREPSandTSR

performancedidnotmeettheminimum

requiredthresholdperformanceandas

suchtherewillbeanoverallnilvesting

forthe2021LTIPaward.

TheCommitteeiscomfortablethatactions

takenonpayduringtheyearacrossthe

Companywereappropriateandbalanced

theinterestsofallstakeholdersandthatthe

RemunerationPolicyoperatedasintended.

Looking ahead

InFY25thereisparticularfocuson

settingtargetsthatareappropriate,that

supportourbusinessstrategyanddeliver

operationalimprovements.

DIRECTORS’ REMUNERATION POLICY

FOR FY25

Inlinewithcorporategovernanceandlegal

requirements,ourRemunerationPolicyis

reviewedeverythreeyearsandapprovedby

shareholders.DuringFY24,theCommittee

undertookareviewofthePolicytoensurethat

itremainsalignedtoourbusinessstrategy

andsupportsourfuturesuccess.Aftercareful

consideration,includingconsultingwith

shareholdersandemployees,theCommittee

agreedthatthePolicyremainedfitforpurpose

andthatnochangestothePolicyitselfwere

required.Adjustmentsmadetosomeofthe

incentivemetricsforFY25,withinthePolicy,

aredescribedbelowandtheincentiveplans

willcontinuetobebasedonperformance

measuresalignedtothebusinessstrategy

withstretchingtargetsandthemajorityofthe

overallincentivedeliveredinshareswhich

mustbeheldlongterm.

TheCommitteeandmanagementwill

continuetooperatethePolicydiligentlyand

withrestraintwherenecessaryaswehave

doneinrelationtothecurrentPolicy.

IMPLEMENTATION OF THE POLICY IN FY25

Salary and fees

ThesalaryfortheChiefExecutiveOfficerhas

notbeenincreasedforFY25andremainsat

thesamelevelof£735,420.GilesWilson,

theCFO,joinedtheCompanyon13May

2024andwillreceiveasalaryof£485,000.

ThefeesfortheChairoftheBoardandthe

Non-ExecutiveDirectorsareunchanged

fromFY24.

Global Bonus Scheme (GBS)

Themaximumannualbonuspayableunder

theGBSis200%ofsalaryfortheCEOand

150%ofsalaryfortheCFO.ForFY25,the

performanceconditionswillcontinuetobe

basedonPBTfor55%ofthebonus

opportunity,withtheintroductionofameasure

relatedtothenumberofpairsofbootssold

intheDirect-to-consumer(DTC)channel

for20%ofthebonusopportunity.Wewill

continuetosetthreestrategicobjectives,with

atotalof25%ofthebonusopportunity,

reflectingourcorefocusareas.Sustainability

(ESG)remains,withtheintroductionof

newmetrics,branddesireandleadership

behaviours.Stretchingtargetswillbesetand

furtherdetailswillbeprovidedintheDirectors’

RemunerationReportforFY25.

ANNUAL STATEMENT FROM THE CHAIR

OF THE REMUNERATION COMMITTEE

GOVERNANCE

117DR. MARTENS PLC ANNUAL REPORT 2024

LTIP

ForFY25,theperformanceconditionswill

continuetobebasedonEPSandTSR,

withtheintroductionofacashconversion

measuretoensurefocusonmanaging

inventoryandcashcollectionfromdebtors.

ToensurethattheLTIPawardisalignedto

therollingbusinessplan,whichiscurrently

beingfinalisedfortheperiodcoveringthis

award,andsothatthereisfulltransparency

forallstakeholdersatthetimethetargets

areset,theCommitteehasdelayedthe

finalisationoftheappropriateawardlevels

andthepreciserangeoffinancialtargets.

Oncethesearedetermined,theCommittee

willpublishthisinformationonRNS

announcementwhentheExecutive

Directors’awardsaremade,andwithinnext

year’sDirectors’RemunerationReport.

CHIEF EXECUTIVE OFFICER

On16April2024,weannouncedthatthe

BoardandKennyWilsonhadagreedthe

timewasrightforhimtostepdownasCEO.

InFY25,KennywillbesucceededbyIje

Nwokorie,thecurrentChiefBrandOfficer,

whowillbecometheCEObeforetheendof

thefinancialyear.Appropriateremuneration

arrangementsfortheincomingandoutgoing

ExecutiveDirectorswillbecarefully

consideredbytheCommitteeinlinewiththe

Policy,andwillbedisclosedintheDirectors’

RemunerationReportforFY25.

WORKFORCE ENGAGEMENT

Inordertosupportthereviewofthe

RemunerationPolicy,thisyearIspokein

depthtoemployeesonourapproachto

executiveremuneration,inparticularto

explainhowitalignswithCompanystrategy

andthecontributionofalltheworkforce.In

theformofa‘FiresideChat’,wefoundthis

informalapproachencouragedanopen

forumfordiscussionandquestions,giving

usveryusefulinsightandfeedback.

Outsidecoreremunerationlistening,we

seeallformsofemployeeengagementand

listeningasanimportantandfundamental

partofhowwedobusiness.Iwillcontinue

topartnerwithRobynPerriss(ourNon-

ExecutiveDirectorDesignatedEmployee

Representative)overthecomingyearto

progressourapproachtoouremployee

listeninginitiatives.

PAY AND BENEFITS FOR THE WIDER

DR. MARTENS TEAM

Dr.Martens’cultureandremuneration

philosophyisalignedacrossthebusiness.

Weofferacomprehensivepackageof

basepayandbenefitsforallemployees.

Ouraveragepayincreasewas3.2%of

salaryacrossourwiderheadofficeworkforce

fortheyearending31March2024.

Asbrandcustodians,weremaincommitted

toprotectingandenhancingthebrand

forthefutureandwewillcontinuetodothis

throughencouragingshareownership

acrossalllevelsofthebusiness,tofoster

asenseofCompanyownershipand

long-terminvestmentamongemployees.

Webelievethatallemployeesshouldhave

theabilitytohaveastakeinthebusiness

andtoshareinoursuccess.YourShare,

BuyAsYouEarn(BAYE),isourglobal

sharescheme,enablingallemployees

tobuysharesfromtheirincomewhich

theCompanymatchesona1:1basis.We

havebeenverypleasedwiththetake-up,

withc.35%ofemployeesbecoming

shareholdersunderthisschemealone.

DIVERSITY, EQUITY AND INCLUSION

Dr.Martenshasstrongfemale

representationacrossallareasofthe

business,whichweseereflectedinallpay

quartiles.TheCompany’slatestGender

PayGapStatement(forthesnapshot

periodto5April2023)canbefoundonthe

Dr.Martenscorporatewebsiteanddetails

ofourgenderbalanceontheBoardand

theGLTcanbefoundonpage91ofthe

NominationCommitteeReport.

Wehavesetourselvesspecificgenderand

ethnicityrepresentationcommitmentsto

achieveourDiversity,EquityandInclusion

(DE&I)aspirations.

FurtherinformationaboutourDiversity,

EquityandInclusioninitiativesacrossthe

workforceissetoutintheSustainability

Reportonpages68and69.

SHAREHOLDER ENGAGEMENT

TheCommitteeconsultswithitslarger

shareholdersonexecutivepaymatters,

whenconsideredappropriate.InFY24,we

havecarriedoutaformalconsultationwith

shareholdersandproxyadvisersinrelation

totherevisedRemunerationPolicy.Iwould

liketothankthosewhoengagedwithusfor

theirinput.Iamalwayshappytomake

myselfavailabletoshareholderstodiscuss

anyconcernsorfeedbacktheymayhave.

OnbehalfoftheCommittee,thankyoufor

readingthisReportandwelookforward

toreceivingyoursupportattheAGMon

11July2024.

LYNNE WEEDALL

CHAIROFTHEREMUNERATION

COMMITTEE

29May2024

CHIEF FINANCIAL

OFFICER SUCCESSION

On14November2023,we

announcedthatGilesWilsonwould

succeedJonMortimoreasChief

FinancialOfficerandhetookuphis

positionon13May2024.

Giles’salaryis£485,000withacash

allowanceof5%inlieuofpension.The

salaryisonlyslightlyhigherthanthe

levelforJon,andislowerthanathis

previousemployer,andwasnecessary

tosecurehim.Gileswillparticipatein

theGBSuptoamaximumof150%of

salaryandtheLTIPuptoamaximum

of300%ofsalary.

Inaddition,aspartofhisjoining

arrangements,weagreedto

compensateGilesforawards

forfeitedonleavinghisprevious

employer.Furtherdetailsofthe

remunerationarrangementsfor

Giles,includingthebuyoutawards,

areshownonpage128.

Followingtheannouncementon14

April2023thatJonMortimorewould

besteppingdownfromhisroleas

CFO,theCommitteenotedthathe

wasretiringand,onthatbasis,

confirmedhis‘goodleaver’status.

Jonretiredon31March2024,

leavingtheCompanyandstepping

downfromtheBoardatthatdate.

WearegratefultoJonforagreeing

tostaywiththebusinessbeyond

hiscontractualnoticeperiodtohelp

ensureasmoothyearend.His

leavingarrangementsaredetailedon

page129andareinlinewithpolicy.

1. Availableinallcountrieswheretheregulationsallow.

118 DR. MARTENS PLC ANNUAL REPORT 2024

REMUNERATION COMMITTEE REPORT CONTINUED

£0k £1,000k £2,000k £3,000k £4,000k £5,000k

FY24 Actual

Minimum

Target

Maximum

100%

31%

18%

£787

£2,573

£4,358

29%

34%

40%

48%

£0k £1,000k £2,000k £3,000k

FY24 Actual

Minimum

Target

Maximum

100%

33%

20%

£512

£1,542

£2,571

23%

28%

44%

52%

AT A GLANCE

Performance snapshot

GLOBAL BONUS SCHEME PERFORMANCE

Measure

Weighting

of the bonus

Result

achieved

Achievement

(out of a maximum 100%)

Payout as a % of

total bonus

Financial performance PBT 75.0% £93.0m 0% 0%

Strategicobjectives

Employeeengagement 8.33% 3.94 0% 0%

Brandequity 8.33% 1.86outof6areasimproved 0% 0%

ESG 8.33% 6targetscompleted 100% 8.33%

Formulaicoutcome

8.33%

Finaloutcome

1. ExecutiveDirectorselectedtowaivetheirbonusentitlementforFY24.

KENNY WILSON, CEO JON MORTIMORE, CFO

Time horizons for remuneration elements

Year 1 Year 2 Year 3 Year 4 Year 5

Fixed pay

Global Bonus Scheme

(recoveryprovisionsapply)

LTIP

(recoveryprovisionsapply)

Salary, pension

and benefits

66.7% cash

Performance period

33.3% shares

Holding period

Implementation for FY25

Base salary 0%increasefortheExecutiveDirectors

• CEO–£735,420

• CFO–£485,000

Benefits Nochange.

Pension 5%ofsalary(inlinewiththewiderworkforce).

Global Bonus Scheme (GBS)

• Maximumopportunity:

– CEO–200%ofsalary

– CFO–150%ofsalary

• SubjecttoPBT(55%),numberofpairsofDTCbootssold(20%)andstrategicobjectives(25%)

• 33.3%deferredintosharesfortwoyears

LTIP

• Awardlevelandrangestobeconfirmedandpublishedwhentheawardsaremade

• SubjecttoEPS(50%),cashconversion(25%)andrelativeTSR(25%)

• Two-yearholdingperiodapplies

Shareholding guidelines 300%ofsalary(tobeheldfortwoyearspostemployment).

Chair and Non-Executive Directors 0%increaseinfees.

Fixed pay Global Bonus Scheme LTIP

GOVERNANCE

119DR. MARTENS PLC ANNUAL REPORT 2024

REMUNERATION REPORT

ThisReporthasbeenpreparedinaccordance

withtheprovisionsoftheCompaniesAct

2006(theAct),theLargeandMedium-sized

CompaniesandGroups(Accountsand

Reports)Regulations2008andthe

subsequentamendments,andtheUKListing

AuthorityListingRules.Inaddition,theReport

hasbeenpreparedona‘complyorexplain’

basiswithregardtotheUKCorporate

GovernanceCode2018(theCode).The

RemunerationPolicydescribedinthissection

isintendedtoapplyforthreeyearsandwill

beapplicablefromthedateofapprovalby

shareholdersattheCompany’s2024AGM.

Decision-making process for

determination, review and

implementation of the Policy

TheCommitteeisresponsibleforthe

development,implementationandreview

oftheDirectors’RemunerationPolicy.In

addressingthisresponsibility,theCommittee

workswithmanagementandexternal

adviserstodevelopproposalsand

recommendations.TheCommitteeconsiders

thesourceofinformationpresentedtoit,

takescaretounderstandthedetailand

ensuresthatindependentjudgementis

exercisedwhenmakingdecisions.The

RemunerationCommitteeworksalongside

otherBoardCommitteesasneeded.

TheCommitteereviewsthePolicyandits

operationtoensureitcontinuestosupportand

rewardtheExecutiveDirectorsforachieving

thebusinessstrategy,bothoperationallyand

overthelongerterm.Itreviewsthestructure

andquantumofrewardsandtakesinto

accounttheCode,marketpractice,

shareholderviewsandtheviewsofinstitutional

investorsandinvestorrepresentativebodies.

TheCommitteealsoconsidersthe

remunerationarrangements,policiesand

practicesfortheworkforceasawholewhich

itreviewsaspartofitsannualagenda.

ThePolicy’soperationisconsideredannually

fortheyearahead,includingmetricsfor

incentives,weightingsandtargets.The

CommitteereviewsthePolicy’soperationfor

theprioryearandconsiderswhether,inlight

ofthestrategy,changesarerequiredforthe

comingyear.Targetsfortheannualbonus

andLTIPawardsarealsoreviewedto

determinewhethertheyremainappropriate

orneedtoberecalibrated.Itisthe

Committee’spolicytoengagewithandseek

feedbackfromshareholdersasappropriate,

dependingonthechangesproposed.

Consideration of employment

conditions elsewhere in the Group

TheCompanyprovidesamarketcompetitive

packagetoallemployeeswithadditional

rewardthroughincentivepaymentslinkedto

theachievementofstretchingperformance

targets.Thisrewardphilosophyappliestoall

levelsofthebusiness.Inviewofthegreater

potentialremuneration,theExecutive

Directorshaveagreaterproportionoftheir

payat‘risk’andsubjecttopaymentin

shares,deferralandholdingperiods.The

RemunerationCommitteetakesinto

accountgeneralworkforceremuneration

andrelatedpolicies,andthealignmentof

incentivesandrewardswithculturewhen

settingandoperatingthePolicyforExecutive

Directors’remunerationandtheCommittee

receivesregularupdatesonanychanges

towiderCompanyRemunerationPolicy.

DuringtheyearI,alongsideRobynPerriss(our

Non-ExecutiveDirectorDesignatedEmployee

Representative),engagedextensivelywithour

widerworkforceandsuccessfullyprogressed

ourapproachtoouremployeelistening

initiatives.Theobjectiveofthesesessionswas

formetoshareourapproachtoexecutive

remuneration,explainhowitalignswith

Companystrategyandinvitecomments,

questionsandinput.Employeesinvitedto

theseforumsareselectedatrandom.Feedback

fromtheemployeesessionwasconsidered

whendesigningtheRemunerationPolicy.

TheCommitteealsoreceivesupdates

ontheremunerationstructurethroughout

theGroup,withsalaryandbonusreviews

eachyear.Insettingremunerationforthe

ExecutiveDirectors,theCommitteetakes

noteoftheoverallapproachtorewardsfor

employeesintheGroup.Therefore,the

Committeeissatisfiedthatthedecisions

madeinrelationtoExecutiveDirectors’pay

aremadewithanappropriateunderstanding

oftheoutcomesforthewiderworkforce.

Consideration of shareholder views

Inconsideringtheoperationofthe

RemunerationPolicy,theCommitteetakes

intoaccountthepublishedremuneration

guidelinesandspecificviewsofshareholders

andproxyvotingagencies.TheCommittee

willconsultwiththeCompany’slarger

shareholders,whereconsideredappropriate.

AspartofthePolicyrenewalprocessthe

CommitteeChairconsultedwithmajor

shareholders,aswellasproxyvotingbodies

andshareholderadvisorygroups.

Furthermore,theCommitteewillconsider

specificconcernsormattersraisedatany

timebyshareholdersonremuneration.

Other considerations

InlinewiththeCode,thePolicyhasbeen

testedagainstthesixfactorslistedin

Provision40:

• Clarity–thePolicyisasclearaspossible

andisdescribedinstraightforward,

concisetermstoshareholdersandthe

workforceinthisReport.

• Simplicity–remunerationstructuresare

assimpleaspossibleandmarkettypical,

whilstatthesametimeincorporatingthe

necessarystructuralfeaturestoensurea

strongalignmenttoperformance,strategy

andminimisingtheriskofrewardingfailure.

• Risk–theDirectors’Remuneration

Policyhasbeenshapedtodiscourage

inappropriaterisktakingthrougha

weightingofincentivepaytowards

long-termincentives,thebalancebetween

financialandnon-financialmeasuresinthe

annualbonusknownastheGlobalBonus

Scheme(GBS),aportionoftheGBSbeing

paidinshares,recoveryprovisions,and

in-employment&post-employment

shareholdingrequirements.Toavoid

conflictsofinterest,Committeemembers

arerequiredtodiscloseanyconflictsor

potentialconflictsaheadofCommittee

meetings.NoExecutiveDirectororother

memberofmanagementispresentwhen

theirownremunerationisunderdiscussion.

• Predictability–elementsofthePolicyare

subjecttocapsanddilutionlimits.Examples

ofhowremunerationvariesdependingon

performanceissetoutinthescenario

chartsonpage124.TheCommitteemay

exerciseitsdiscretiontoadjustDirectors’

remunerationifaformula-drivenincentive

payoutisinappropriateinthecircumstances.

• Proportionality–thereisasensible

balancebetweenfixedpayandvariable

pay,andincentivepayisweightedto

sustainablelong-termperformance.

Incentiveplansaresubjecttoperformance

conditionsthatconsiderbothfinancial

andnon-financialperformancelinked

tostrategy.Outcomeswillnotreward

poor performance.

• Alignment to culture–the

RemunerationCommitteewillconsider

Companycultureandwiderworkforce

policieswhenshapinganddeveloping

executiveremunerationpoliciesto

ensurethatthereiscoherenceacross

thebusiness.Therewillbeastrong

emphasisonthefairnessofremuneration

outcomesacrosstheworkforce.

Conclusion of the review and key

changes to the Policy

TheCommitteeconcludedthatthe

Directors’RemunerationPolicyhad

operatedasintendedoverthepastthree

years,andfollowingthereview,concluded

thatthePolicywasfitforpurposeandthatno

changestothePolicyitselfwererequired.

DIRECTORS’ REMUNERATION POLICY

120 DR. MARTENS PLC ANNUAL REPORT 2024

REMUNERATION REPORT CONTINUED

Policy detail by remuneration element (no change from previous Policy)

PAY ELEMENT

AND PURPOSE OPERATION OPPORTUNITY

PERFORMANCE METRICS,

WEIGHTING AND ASSESSMENT

Base salary

Provide a base level of

remuneration to help

us acquire, retain and

engage top talent

Salaries are generally reviewed

annually and any changes are normally

effective from the beginning of the

financial year.

The review will take into account several

factors including (but not limited to):

• The Director’s role experience

and skills;

• The remuneration policies, practices

and philosophy of the Company;

• Pay conditions in the Group;

• Business performance;

• Market data for similar roles and

comparable companies; and

• The economic environment.

Having been set based on relevant

factors, base salaries will normally

increase no more than the average

increases made to the wider workforce.

Higher increases may be permitted

where appropriate, for example where

there is a change to role or there is

additional responsibility or complexity.

None

Benefits

To provide a market-

competitive level of

benefits based on the

market in which the

Executive is employed

The Executive Directors receive benefits

which include, but are not limited to,

family private health cover, life assurance

cover and car allowance, although they

can include any such benefits that the

Committee deems appropriate.

The Remuneration Committee retains

the discretion to be able to adopt other

benefits including (but not limited to)

relocation expenses, tax equalisation

and support in meeting specific costs

incurred by Directors.

Any reasonable business-related

expenses can be reimbursed, including

the tax thereon, if determined to be a

taxable benefit.

The maximum will be set at the cost

of providing the benefits described.

None

Pensions

To provide market-

competitive retirement

benefits

Contribution to the Group Pension Plan

or a cash allowance in lieu of pension.

Pension contribution in line with the

rate applicable for the majority of the

UK workforce (currently 5% of salary).

None

Global Bonus Scheme (GBS)

To reward annual

performance against

financial and non-

financial KPIs and to

encourage long-term

sustainable growth and

alignment with

shareholders’ interests

through payment in

The Remuneration Committee will

normally determine the GBS payable

after the year end, based on

performance against targets.

No more than two-thirds of the GBS

will be paid out in cash after the end

of the financial year. The remaining

amount will be used to purchase shares

which the Executive is required to hold

for two years.

Malus and clawback provisions will

apply up to the date of the GBS

determination and for three years

thereafter.

The maximum GBS opportunity for

the Executive Directors is as follows:

CEO – 200% of base salary.

CFO – 150% of base salary.

GBS payouts are determined based

on the satisfaction of a range of key

financial and strategic objectives set

by the Remuneration Committee.

The majority of the performance

measures will be based on financial

performance.

Performance measures will be set each

year in line with Company strategy.

No more than 10% of the relevant

portion of the GBS is payable for

delivering a threshold level of

performance, and no more than 50%

is payable for delivering a target level

of performance (where the nature

of the performance metric allows such

an approach).

The Remuneration Committee has

the discretion to adjust the formulaic

GBS outcome if it believes that such

outcome is not a fair and accurate

reflection of business performance.

GOVERNANCE

121DR. MARTENS PLC ANNUAL REPORT 2024

PAY ELEMENT

AND PURPOSE OPERATION OPPORTUNITY

PERFORMANCE METRICS,

WEIGHTING AND ASSESSMENT

Long Term Incentive Plan (LTIP)

To encourage long-term

sustainable growth and

to provide alignment

with shareholders’

interests

Awards can be granted in the form of

conditional shares or nil-cost options.

Awards will vest at the end of a

performance period of at least three

years, subject to the satisfaction of

performance conditions and provided

that the Executive remains employed

by the Group.

The net of tax number of shares that

vest will be subject to an additional

two-year holding period, during which

the shares cannot be sold.

An additional payment, normally in

shares, may be made equal to the value

of dividends which would have accrued

on vested shares.

Malus and clawback provisions will

apply for three years post vesting.

The normal maximum award level will

be 300% of salary per annum, based

on the face value of shares at grant.

If exceptional circumstances arise,

including (but not limited to) the

recruitment of an individual, awards

may be granted up to a maximum of

400% of salary.

Awards will be subject to a combination

of long-term measures which are

aligned to the business strategy and

shareholder experience and may

include financial metrics (such as EPS),

shareholder value metrics (such as

TSR), and ESG or strategic objectives.

At least half of the award will be subject

to financial and/or shareholder return

measures.

The Committee will have discretion to

set different measures and weightings

for awards in future years to best

support the strategy of the business

at that time.

Threshold performance under each

metric will result in no more than 25%

of that portion of the award vesting.

The Remuneration Committee has

the discretion to adjust the formulaic

outcome of the LTIP if the Committee

believes that it is not a fair and accurate

reflection of business performance.

All-employee share plans

To provide alignment

with Group employees

and to promote share

ownership

The Executive Directors may participate

in any all-employee share plan operated

by the Company.

Participation will be capped by

the HMRC limits applying to the

respective plan.

None

Shareholding requirement

To provide alignment

with shareholders’

interests

During employment

Executives are required to build up

and retain a shareholding equivalent

to 300% of their base salary.

Until the shareholding requirement

is met, Executive Directors will be

required to retain 50% of the net of

tax shares they receive under any

incentive plan.

Post-employment

Any Executive Director leaving the

Company will be expected to retain the

lower of the shares held at cessation of

employment and shares to the value of

300% of salary for a period of two years.

300% of salary. None

Non-Executive Directors

To provide an

appropriate fee level to

attract and retain

Non-Executive

Directors and to

appropriately recognise

the responsibilities and

time commitment

Non-Executive Directors are paid a

base fee and additional fees for acting

as Senior Independent Director and as

Chair of Board Committees (or to reflect

other additional responsibilities and/or

additional/unforeseen time

commitments).

The Chair of the Board receives an

all-inclusive fee.

Neither the Chair of the Board nor the

Non-Executive Directors participate

in any incentive plans.

Fees are reviewed annually.

The fee for the Chair of the Board is

set by the Remuneration Committee

and the Non-Executive Directors’ fees

are set by the Board (excluding the

Non-Executive Directors).

In general, fee level increases will be

no higher than the average rise in

salaries for the rest of the workforce.

The Company will reimburse any

reasonable expenses incurred

(and related tax if applicable).

None

122 DR. MARTENS PLC ANNUAL REPORT 2024

REMUNERATION REPORT CONTINUED

Notes to the Remuneration Policy table

CHOICE OF PERFORMANCE MEASURES

EachyeartheRemunerationCommitteewillselectthemost

appropriateperformancemeasuresandtargetsfortheGBS

andLTIP.ThemeasuresselectedwillbealignedwithCompany

strategyandkeyperformanceindicatorsandmayalsobebased

onTotalShareholderReturn(TSR).

GBSperformancemetricsincludeamixoffinancialtargetsand

non-financialobjectives,reflectingthekeyannualprioritiesofthe

Company.Thefinancialmetricsdeterminethemajorityofthe

bonusalongsideacombinationofkeystrategicandwidernon-

financialtargets.ForFY25,theGBSmeasuresarePBT,the

numberofpairsofbootssoldDirect-to-consumer(DTC),andthree

strategicobjectivescoveringleadershipbehaviours,branddesire

andsustainability.TheLTIPperformancemetricsrelatetocreating

long-termreturnsandtypicallyincludemeasuresoflong-term

profitablegrowth(e.g.EPS)andshareholderreturns(e.g.TSR).

TheperformancemeasuresforFY25willbeEPSandTSRwiththe

additionofacashconversiontarget.Thedetailedperformance

measuresandtargetsforFY25willbedisclosedintheRNSwhen

theawardsaremade.

TheCommitteeretainsdiscretionwithinthePolicytosetdifferent

performancecriteriaand/oralterweightingsfortheGBSand

long-termincentivesinlinewiththeCompany’sstrategicpriorities.

Performancetargetsaresetbasedonarangeofexpected

outcomes,takingintoaccountbothinternalandexternal

expectationsofperformance.Targetsaresettobechallengingyet

realistic.Allassessmentsofperformanceareultimatelysubject

totheCommittee’sjudgement.Anydiscretionexercised,andthe

rationale,willbedisclosedintheAnnualReportonRemuneration.

DIFFERENCES IN POLICY FROM BROADER EMPLOYEE

POPULATION

Dr.Martens’cultureandremunerationphilosophyisalignedacross

thebusiness,althoughpayisgenerallymorevariableandlinked

moretothelongtermforthoseatmoreseniorlevels.Overall,the

PolicyfortheExecutiveDirectorsismoreheavilyweightedtowards

performance-relatedpaythanforotheremployees.Inparticular,

performance-relatedlong-termincentivesarenotprovidedoutside

theseniormanagementpopulationastheyarereservedforthose

consideredtohavethegreatestpotentialtoinfluenceoverall

performance.Althoughlong-termincentivesareawardedonlyto

themoreseniorlevelsintheGroup,webelievethatallemployees

shouldhavetheabilitytohaveastakeinthebusinessandtoshare

inoursuccess.YourShare,BuyAsYouEarn(BAYE),isourglobal

sharescheme,enablingallemployeestobuyshares

fromtheir

incomewhichtheCompanymatchesona1:1basis.Executive

Directorsareeligibletoparticipateinthisplanonthesamebasis

asotheremployees.

MALUS AND CLAWBACK

TheCommitteemay,atanytimeintheperiodendingonthe

thirdanniversaryoftheReleaseDateofanLTIPawardorGBS

payment,determinethatmalusand/orclawbackprovisionsapply

inthefollowingcircumstances:(i)materialfinancialmisstatement;

(ii)significantreputationaldamage;(iii)negligenceorgross

misconductbyaparticipant;(iv)fraudeffectedbyorwiththe

knowledgeofaparticipant;(v)materialcorporatefailure;or

(vi)whereawardsweregrantedorvestedbasedonerroneous

ormisleadingdata.Therearerobustmechanismsinplaceto

ensurethattheseprovisionsareenforceable.

DISCRETION

TheRemunerationCommitteecanexercisediscretioninanumber

ofareaswhenoperatingtheCompany’sincentiveschemesmore

widelywithinthebusiness,inlinewiththerelevantrulesofthe

schemes.Theseinclude(butarenotlimitedto):

• thechoiceofparticipants;

• whetherornottoapplyperformanceconditionstoawards,and

whatanyapplicableconditionsshouldbe(fortheavoidanceof

doubt,GBSandLTIPawardstoExecutiveDirectorswillalways

besubjecttoperformanceconditions);

• thesizeofawardsinanyyear(subjecttothelimitssetoutin

theDirectors’RemunerationPolicytable);

• theextentofpaymentsorvestinginlightoftheachievement

oftherelevantperformanceconditions;

• thedeterminationofgoodorbadleaversandthetreatmentof

outstandingawards(subjecttotheprovisionsoftheScheme

RulesandtheRemunerationPolicyprovisions);and

• thetreatmentofoutstandingawardsintheeventofachange

ofcontrol,inaccordancewiththeplanrules.

Inaddition,ifeventsoccurwhichcausetheRemunerationCommittee

toconcludethatanyperformanceconditionisnolongerappropriate,

thatconditionmaybesubstituted,variedorwaivedasisconsidered

reasonableinthecircumstancesinordertoproduceafairermeasure

ofperformancethatisnotmateriallylessdifficulttosatisfy.

1. Availableinallcountrieswheretheregulationsallow.

GOVERNANCE

123DR. MARTENS PLC ANNUAL REPORT 2024

£0k £2,000k £4,000k £6,000k £0k £1,000k £2,000k £3,000k £4,000k

Maximum with

share price increase

Maximum

Target

Minimum

14%

18%

30%

26%

33%

28%

40%

20%

49%

42%

100%

£5,567

£4,464

£2,626

£787

Kenny Wilson, CEO

15%

19%

32%

21%

27%

23%

43%

21%

54%

45%

100%

£3,433

£2,705

£1,614

£523

Giles Wilson, CFO

Minimum:ComprisesfixedpayonlybasedonFY25basesalaries,FY25benefitsanda5%Companypensioncontribution.

On Target:Fixedpayplus50%ofthemaximumFY25GBS(100%ofsalaryfortheCEOand75%ofsalaryfortheCFO)and50%LTIP

vesting(150%ofsalaryfortheCEOandCFO).

Maximum:Fixedpayplus100%ofthemaximumFY25GBS(200%ofsalaryfortheCEOand150%ofsalaryfortheCFO)and100%

LTIPvesting(300%ofsalaryfortheCEOandCFO).

Maximum with share price increase:ThesameasMaximumbutassumes50%sharepricegrowthontheLTIPaward.

Recruitment policy

WhensettingremunerationpackagesfornewExecutiveDirectors,paywillbesetinlinewiththeRemunerationPolicyoutlinedabove.Several

factorswillbeconsidered:thegeographyinwhichtherolecompetesorisrecruitedfrom,thecandidate’sexperienceandskills,aswellasthe

remunerationlevelsofotherExecutivesandcolleaguesinthebusiness.TheRemunerationCommitteeismindfulthattheCompanyshould

avoidpayingmorethanisnecessarytorecruitthedesiredcandidate.

REMUNERATION ELEMENT POLICY

External appointment

to the Board

Salary Base salary would be set at an appropriate level considering the factors mentioned above.

Relocation If an Executive Director needs to relocate in order to take up the role, the Company would pay to cover the costs of

relocation including (but not limited to) actual relocation costs, temporary accommodation and travel expenses.

Buyout awards For external appointments, the Remuneration Committee may (if it is considered appropriate) provide a buyout award

equivalent to the value of any outstanding incentive awards that will be forfeited on cessation of a Director’s previous

employment. To the extent possible, the buyout award will be made on a broadly like-for-like basis. The award will take into

account the performance conditions attached to the vesting of the forfeited incentives, the timing of vesting, the likelihood of

vesting and the nature of the awards (cash or equity). Any such buyout award may be granted under the LTIP or the provision

available under UKLA Listing Rule 9.4.2. to enable awards to be made outside the LTIP in exceptional circumstances.

GBS Joiners may receive a pro-rated GBS based on their employment as a proportion of the financial year and targets may be

different to those set for other Executives.

LTIP Grants will be set in line with the Policy in the year of joining.

Other elements Benefits and pension will be set in line with Policy.

Internal appointment

to the Board

When existing employees are promoted to the Board, the above policy will apply, from the point where they are appointed

to the Board and not retrospectively. In addition, any existing awards will be honoured and form part of ongoing

remuneration arrangements.

Non-Executive Directors Fees will be in line with the Remuneration Policy and the fees provided for the other Non-Executive Directors.

Inexceptionalcircumstances,themaximumlevelofvariablepaywhichmaybeawardedtoanewExecutiveDirectorinthefirstyearof

appointmentunderthePolicywillbe600%ofsalaryforaCEOand550%foraCFO.

Fixed pay Global Bonus Scheme LTIP LTIP value with 50% share price growth

REMUNERATION SCENARIOS FOR EXECUTIVE DIRECTORS

ThechartsbelowgiveanindicationoftheleveloftotalannualremunerationthatwouldbereceivedbyeachExecutiveDirectorinaccordance

withthePolicyinrespectofminimumpay(fixedpay),ontargetandmaximumperformancebasedonassumptionssetoutbelow.Thecharts

arebasedonthepolicymaximumforbothGBSandLTIPforillustrativepurposes.

124 DR. MARTENS PLC ANNUAL REPORT 2024

REMUNERATION REPORT CONTINUED

Service agreements and letters of appointment

TheExecutiveDirectorshaveaservicecontractrequiringninemonths’noticeofterminationfromeitherpartyasshownbelow:

Executive Director

Date of

appointment

Date of

current contract

Notice from

the Company

Notice from

the individual

Unexpired period

of service contract

KennyWilson 5January2021 21January2021 9months 9months Rolling

GilesWilson 13May2024 14November2023 9months 9months Rolling

CopiesofExecutiveDirectors’servicecontractsareavailableforinspectionattheCompany’sregisteredoffice.

Intheeventofterminationforcause(e.g.grossmisconduct)neithernoticenorpaymentinlieuofnoticewillbegiven,andtheExecutive

Directorwillceasetoperformtheirservicesimmediately.

TreatmentofotherelementsofthePolicy(includingGBSandLTIP)willvarydependingonwhetheranExecutiveDirectorisdefinedasa

‘good’or‘bad’leaver.TheRemunerationCommitteehasthediscretiontodeterminewhetheranExecutiveDirectorisagoodleaver,and

reasonsforgoodleavertreatmentinclude,butarenotlimitedto,death,ill-health,injuryordisabilityandretirement.

Thetreatmentofthevariouselementsofpayonterminationaresummarisedbelow.

Salary, benefits and

pension

If notice is served by either party, the Executive Director can continue to receive base salary, benefits and pension for the

duration of their notice period. The Executive Director may be asked to perform their normal duties during their notice

period, or they may be put on garden leave. The Company may, at its sole discretion, terminate the contract immediately,

at any time after notice is served, by making a payment in lieu of notice equivalent to salary, benefits and pension, with any

such payments being paid in monthly instalments over the remaining notice period. The Executive Director will normally

have a duty to seek alternative employment and any outstanding payments will be subject to offset against earnings from

any new role.

GBS Good leavers will still be eligible to receive a GBS at the usual time with performance measured at usual time. The GBS

will normally be pro-rated for service during the financial year.

Bad leavers will not be eligible to receive a GBS.

Deferred shares are beneficially owned by the Executive Director from grant and so they are not at risk of forfeiture, other

than in relation to clawback and malus. Shares subject to a holding period will be released at the normal time.

LTIP Awards are forfeited on cessation of employment except for ‘good leavers’ (where awards vest subject to performance

conditions and normally scaled back pro rata to the proportion of the performance or vesting period served). The

Remuneration Committee will have the ability to allow the awards to vest in full subject to performance but with no time

pro-rating, in exceptional circumstances.

Shares subject to a holding period will be released at the normal time.

Chair and Non-Executive Directors

TheChairoftheBoardandNon-ExecutiveDirectorshavelettersofappointmentwiththeCompany.Inlinewithmarketpractice,thereis

typicallyanexpectationforNon-Executivestoservetwothree-yeartermsbuttheymaybeinvitedbytheBoardtoserveanadditionalperiod,

subjecttoannualre-appointmentattheAGM.Appointmentsareterminablebyeitherpartyonthreemonths’writtennotice.Theappointment

lettersprovidethatnocompensationispayableontermination,otherthanaccruedfeesandexpenses.

ThetablebelowdetailsthelettersofappointmentforeachNon-ExecutiveDirector.

Non-Executive Directors

Date of

appointment

Date of current letter

of appointment

Notice from

the Company

Notice from

the individual

PaulMason 5January2021 9January2021 6months 6months

LynneWeedall 11January2021 8January2021 3months 3months

IanRogers 11January2021 25November2020 3months 3months

RobynPerriss 11January2021 8January2021 3months 3months

TaraAlhadeff 5January2021 9January2021 N/A 3months

AndrewHarrison 1May2023 27March2023 3months 3months

CopiesofNon-ExecutiveDirectors’lettersofappointmentareavailableforinspectionattheCompany’sregisteredoffice.

1. IjeNwokoriesteppeddownfromtheBoardon1February2024totakeupthepositionofChiefBrandOfficerwithimmediateeffect.

External appointments

WiththeapprovaloftheBoard,ExecutiveDirectorsmayacceptoneexternalappointmentasaNon-ExecutiveDirectorandretainthefees.

GOVERNANCE

125DR. MARTENS PLC ANNUAL REPORT 2024

Remuneration Committee

ROLE AND RESPONSIBILITIES

TheroleoftheRemunerationCommitteeistodetermineandestablishaRemunerationPolicyfortheExecutiveGroupandtooversee

theremunerationpackagesforthoseindividuals.Whendeterminingremunerationarrangements,theCommitteemustreviewworkforce

remunerationandrelatedpoliciesandthealignmentofincentivesandrewardswithcultureandtaketheseintoaccountwhendetermining

remunerationoftheExecutiveGroup.FurtherdetailsontherolesandresponsibilitiesoftheCommitteearedisclosedinthetermsof

referencewhichcanbefoundontheCompany’scorporatewebsite:www.drmartensplc.com.

REMUNERATION COMMITTEE MEMBERSHIP AND MEETINGS

DuringtheyeartheRemunerationCommitteecomprisedLynneWeedall(Chair),RobynPerriss,AndrewHarrisonandIanRogers,

allofwhomareIndependentNon-ExecutiveDirectors.AndrewHarrisonjoinedtheCommitteeon1May2023.

TheCommitteemetatotalofsixtimesduringtheyearended31March2024(onemeetingwasanextraordinarymeetinginJune2023).

ThenumberofmeetingsattendedoutofthepossiblemaximumforeachofthemembersoftheCommitteeissetoutonpage116and

includedintheAnnualReportonRemunerationbyreference.

KEY ACTIVITIES DURING THE YEAR

KeyactionsandareasofreviewbytheCommitteeduringtheyearincluded:

• ReviewedandapprovedtheRemunerationPolicytobepresentedtoshareholdersattheAGMinJuly2024;

• ConsultedwithmajorshareholdersaspartofthePolicyrenewalprocess;

• ApprovedtheremunerationarrangementsforGilesWilson,theCFO,andconfirmedtheleavingarrangementsforJonMortimore,

theformerCFO;

• ApprovedremunerationpackagesfornewseniorhiresbelowthemainBoard;

• DeterminedtheremunerationarrangementsfortheExecutiveGroup;

• ReviewedandapprovedtheGlobalBonusSchemeoutcomefortheExecutiveDirectorsandthewiderworkforce;

• ApprovedtheGBSandLTIPmeasuresandtargetsforFY24awards,ensuringthatperformancemeasuresalignwithourstrategy

andthattargetsarestretchingandincentivisingagainstthewiderglobaleconomicchallengesthatweface;

• MonitoredperformancefortheinflightGBSandLTIPawards;

• ReviewedshareholdingsagainstshareownershiprequirementsfortheExecutiveGroup;and

• Reviewedremunerationandrelatedpoliciesrelatingtothewiderworkforce.

EXTERNAL ADVISERS

TheRemunerationCommitteereceivesindependentadvicefromKornFerry,whowereappointedinJune2020bythepre-IPO

RemunerationCommittee,followingatenderprocess.TheCommitteeissatisfiedthatKornFerryremainsindependentoftheCompany

andthattheadviceprovidedisimpartialandobjective.KornFerryisasignatorytotheRemunerationConsultantGroup’sCodeof

Conductwhichsetsoutguidelinestoensurethatanyadviceisindependentandfreeofundueinfluence,detailsofwhichcanbefound

atwww.remunerationconsultantsgroup.com.Duringtheyear,KornFerrydidnotprovideanyotherservicestotheGroup.Thetotal

feespaidtoKornFerryforRemunerationCommitteeadviceinFY24were£75,300andwerechargedonatimeandmaterialsbasis.

TheCommittee’sadvisersattendCommitteemeetingsasrequiredandprovideadviceonremunerationforexecutives,analysisofthe

RemunerationPolicyandregularmarketandbestpracticeupdates.TheadvisersreportdirectlytotheCommitteeChair.

STATEMENT OF VOTING AT THE ANNUAL GENERAL MEETING

Atthe2023AGMDr.Martens’shareholderswereaskedtoapprovethe2023Directors’RemunerationReport.TheDirectors’

RemunerationPolicywaslastapprovedbyshareholdersatthe2021AGM.Thevotesreceivedaresetoutbelow:

2023 AGM (13 July 2023) Nature of vote Votes for % Votes against % Votes total Votes withheld

Approvethe2023

Directors’Remuneration

Report(excludingthe

RemunerationPolicy) Advisory 789,249,709 99.70 2,387,991 0.30 791,6 37,700 33,798,706

2021 AGM (29 July 2021) Nature of vote Votes for % Votes against % Votes total Votes withheld

ApprovetheDirectors’

RemunerationPolicy Binding 810,983,185 99.20 6,512,215 0.80 817,495,400 275

ANNUAL REPORT ON REMUNERATION

126 DR. MARTENS PLC ANNUAL REPORT 2024

REMUNERATION REPORT CONTINUED

Single total figure of remuneration for the financial year ending 31 March 2024 (audited)

ThefollowingtablesetsoutthetotalremunerationforExecutiveandNon-ExecutiveDirectorsforthefinancialyearended31March2024.

All figures shown

in £000

Salary

and fees Benefits

Pension

Other

Total Fixed

Remuneration

GBS

(Annual bonus) LTIP

Total Variable

Remuneration Total

FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23

KennyWilson 735 721 15 15 37 36 1 1 788 773 0 0 0 – 0 0 788 773

JonMortimore 473 464 16 15 24 23 1 1 513 503 0 0 0 – 0 0 513 503

PaulMason 342 335 – – – – – – 342 335 – – – – – – 342 335

LynneWeedall 101 99 – – – – – – 101 99 – – – – – – 101 99

IanRogers 68 67 – – – – – – 68 67 – – – – – – 68 67

RobynPerriss 96 94 – – – – – – 96 94 – – – – – – 96 94

IjeNwokorie

57 67 – – – – – – 57 67 – – – – – – 57 67

TaraAlhadeff

– – – – – – – – – – – – – – – – – –

AndrewHarrison

62 N/A – – – – – – 62 – – – – – – – 62 –

Notes to the table

1. Benefitsrepresentsthetaxablevalueofbenefitspaid.BenefitsprovidedtoExecutiveDirectorsarefamilyprivatehealthcoverandcarallowance.

2. ExecutiveDirectorsreceiveacashinlieuofpensioncontributionof5%ofsalary(inlinewiththewiderworkforce).

3. ThisrelatestothevalueofthematchinganddividendsharesawardedunderthetermsoftheShareIncentivePlanknownasBuyAsYouEarn(BAYE).

4. IjeNwokoriesteppeddownfromtheBoardon1February2024totakeupthepositionofChiefBrandOfficerwithimmediateeffect;hisfeeshavebeenpro-ratedaccordingly.

5. TaraAlhadeff,arepresentativeofPermira,receivesnofeesforherroleasNon-ExecutiveDirector.

6. AndrewHarrisonjoinedtheBoardon1May2023;hisfeeshavebeenpro-ratedaccordingly.

Global Bonus Scheme (audited)

ThemaximumGlobalBonusSchemeopportunityforFY24was200%ofsalaryfortheCEOand150%fortheCFO.Theperformanceagainst

measuresforFY24issetoutbelow.ThebonuswassubjecttoPBT(75%ofmaximum)andstrategicobjectives(25%ofmaximum).The

strategicelementwasbasedonthreeequallyweightedmeasures:employeeengagement,brandhealthandsustainability(ESG)targets.

Measure

Threshold Target Stretch

Actual

Achievement %

of maximum

available under

that element

Payout as a

percentage of

total bonusWeighting

10% of

maximum

50% of

maximum

100% of

maximum

PBT 75% £149.0m £165.5m £182.1m £93.0m 0% 0%

Employee engagement

Growglobalemployeeengagement

toreflectathrivingculture.

8.33% Maintain

GlobalGrand

FactorMean

Engagement

Scoreat3.98

GrowGlobal

GrandFactor

Mean

Engagement

Scoreto4.08

StretchGlobal

GrandFactor

Mean

Engagement

Scoreto4.13

GlobalGrand

FactorMean

Engagement

Scoreof3.94

0% 0%

Brand health

Growingthebrandequityacross6

keyareas(Awareness,Familiarity,

EverPurchased,L24MPurchased,

NetConsiderationandNetFuture

PurchaseIntent)inour7keymarkets.

8.33% Improvement

in2ofthe6

brandequity

measures

Improvement

in4ofthe6

brandequity

measures

Improvement

inall6brand

equity

measures

1.86outof6

areasimproved

0% 0%

Sustainability (ESG)

Implementationofthesustainability

strategyacrossbusiness,byshowing

theprogressunderkeycommitments.

8.33% Achieved3out

of6targets

Achieved5out

of6targets

Achieved6out

of6targets

6targets

completed

100% 8.33%

Notes

1. Employeeengagement–InMarch2024,allemployeeswereinvitedtoparticipateinourannualemployeeEngagementandInclusionSurvey.Engagementismeasuredwith

referencetoaGrandFactorMeanScorewhichiscalculatedbasedonoutputfromasurveysystemprovidedbyanexternalprovider.Oursurveyparticipationrateremains

highat92%(3,158responsesoutofapossible3,448).OuroverallscoreforMarch2024was3.94andourThresholdtargetwasmissed.Thishasgonedownby0.04since

March2023.Whilethisisdisappointing,itisnotastatisticallymeaningfuldrop,whichisdefinedasanythingatorabove0.10forthispopulationsize.

2. Brandhealth–Thetargetswerebasedonimprovingtheequityofthebrandacross6coreindicatorsofbrandhealthincludingAwareness,Familiarity,EverPurchased,

Purchasedinthelast24months,NetConsiderationandNetFuturePurchaseIntent.Measurementwasacrossour7prioritymarketsoftheUK,France,Germany,Italy,

USA,ChinaandJapanusingrelativeimprovementversusaspecificgroupoffootwearcompanieswiththebaseperiodbeingOctober2022toOctober2023.

3. Sustainability(ESG)–TargetswerebasedonourPlanet,ProductandPeoplesustainabilitystrategies.Planettargetsincluded(i)identifyinganappropriatemechanismtosystematically

collectandanalysecarbondatainaccordancewithcarbonaccountingrequirementstomeasureprogresstowardsNet-Zeroand(ii)achievingatleast95%ofrenewableenergy

contractsinEMEAandidentifyingsolutionsinUSArenewablestohitourtargetdeadlineof2025.Producttargetsincluded(i)repairandresalemodel:finalisingheadsoftermscontracts

withthethird-partywhitelabelpartnerand(ii)successfullymarketingaproductwithmoresustainablematerial(alternativematerialsuchaseLeatherorregenerativeleather).People

targetsincluded(i)DE&I:allExecutiveGroupcompletinginclusiveleadershiptrainingledbyanexternalspecialistconsultancyand(ii)allTier1supplierscontinuingtobeauditedand

achievinghighCSRstandardsinexternallyconductedaudit.ForFY24,6outof6targetswereachieved.(TheleadershiptrainingwasnotcompletedinFY24forlogisticalreasonsbut

hasbeencommittedtoinearlyFY25.)FurtherdetailsontheactionswehavetakenonsustainabilitycanbefoundintheSustainabilityReportonpage46.

*Wedefinesustainablematerialsasthosewhichare1)Durable,2)Recycled,Renewableand/orRegenerativeand3)ProducedResponsibly.

BasedonperformanceduringFY24theformulaicoutcomeoftheGBSforExecutiveDirectorsis8.33%ofmaximum.However,the

ExecutiveDirectorselectedtowaivetheirbonusforFY24,theequivalentof£122,750and£59,096forourCEOandformerCFO

respectively.Asaresult,therewasnopayoutundertheGBS.

GOVERNANCE

127DR. MARTENS PLC ANNUAL REPORT 2024

Long Term Incentive Plan (LTIP) vesting during the year (audited)

TheawardopportunityfortheLTIPawardsgrantedin2021atadmissionwas300%ofsalaryfortheCEOandformerCFO.Theperformance

againstthemeasuresissetoutbelow.TheLTIPwassubjecttoEPS:compoundannualgrowthoverthreeyears(67%ofmaximum)and

relativeTSRvs.FTSE350excludinginvestmenttrusts(33%ofmaximum).TheperformanceperiodfortheEPSforthisawardwas1April

2021to31March2024withTSRmeasuredfromadmissionon3February2021to31March2024.TheawardsareduetovestinJune2024.

Measure Weighting

Targets

Actual

Vesting

(% of total award)

Threshold

(25% vesting)

Stretch

(100% vesting)

EPS:compoundannualgrowthoverthreeyears 67% 12%p.a. 21%p.a. -21% 0%

RelativeTSRvs.FTSE350(excludinginvestmenttrusts) 33% Median

UpperQuartile

orabove BelowMedian 0%

LTIP granted during the year (audited)

On30June2023,anLTIPawardwasgrantedtotheCEO.Asexplainedinthe2023AnnualReport,theLTIPawardwasreducedto250%

ofsalaryfromtheusualpolicylevelof300%totakeintoaccountthesharepriceatthetimeofgrant.

Executive

Basis of the award

(% of salary) Share price

Number of

shares granted

Face value of the

award at grant date

(£)

Threshold vesting

(% of award) Grant date

Vesting date

KennyWilson 250% 119.3p 1,541,114 1,838,550 25% 30June2023 30June2026

1. Thesharepriceisbasedonthemid-marketcloseonthedaybeforethedateofgrant(30June2023).

2. LTIPgrantsweregrantedintheformofconditionalshareawards.

3. Performanceismeasuredoverthreefinancialyearsfrom1April2023to31March2026.

4. Anadditionaltwo-yearholdingperiodappliesaftertheendofthethree-yearvestingperiod.

Tonote:NoawardwasmadetoJonMortimoreashewasundernoticeofretirementatthetimeoftheawardgrant.

TheawardsabovearesubjecttotheEPSandTSRtargetssetoutinthetablebelow:

Performance measure Weighting Targets Performance period

EPS(compoundannualgrowth) 67% 3%p.a. 11%p.a.

1April2023–

31March2026

RelativeTSRvs.FTSE350(excludinginvestmenttrusts) 33% Median

UpperQuartile

orabove

Payments to former Directors (audited)

NopaymentsweremadetoformerDirectorsoftheCompanyduringtheyear.

Appointment of new Chief Financial Officer

GilesWilsontookupthepositionofCFOon13May2024.

InsettingGiles’remuneration,webenchmarkedhissalaryagainstapeergroupof30FTSEcompaniespositionedaboveandbelowthe

Dr.Martens’marketcapaswellastakingintoaccountthevalueofhispreviousremunerationandthatofthedepartingCFO.Hissalary

of£485,000ispositionedjustbelowthemediansalaryofthisgroupandislessthan3%abovethatoftheformerCFOandlowerthanhis

salarywithhisformeremployer.

ParticipationintheGBSuptoamaximumof150%ofsalaryandtheLTIPuptoamaximum300%ofsalaryareinlinewithincentive

opportunitiesfortheformerCFO.Likewisepensionallowancewillbe5%ofsalary.

Inaddition,weagreedtocompensateGilesforbonusandLTIPawardsforfeitedonleavinghispreviousemployer.

Gileswillreceiveacashpaymentascompensationforthelossofhisannualperformancebonusfor2023toavalueof£299,356.Hewill

alsobecompensatedforaseparateone-offbonustothevalueof£62,750whichhewouldhavereceivedhadhenotresigned.Paymentof

theseamountsweremadeshortlyafterjoining,withGilesusingone-thirdofthenetamountpayabletopurchaseshares.Wewillalsomake

acashpaymenttoGilesinlieuofhisforfeitedannualperformancebonusfortheperiod1January2024to30April2024toavalueof

£99,785.ThiswillbemadeinMarch2025,inlinewiththeoriginalpaymentdate,withone-thirdofthenetamountusedtopurchaseshares.

ThecashLTIPawardsheldbyGilesfor2022and2023willbereplacedbyanawardunderthe2025LTIP(withDM’sperformance

conditions),vestinginJune2027,beingaftertheoriginalvestingscheduleofApril2025forthe2022awardandApril2026forthe2023

award.His2021cashLTIPwhichwasduetovestinApril2024waspaidincashtoavalueof£400,400shortlyafterjoining,basedonthe

outturnoftheoriginalperformanceconditions.

Gileshasbeenprovidedwitharelocationallowanceof£18,000net,payableinsixequalinstalmentsafterjoining,tocoverthecostof

interimaccommodation.Wewillalsocover£20,000associatedwithremovalexpenses.Finally,weprovided£2,000towardslegalcosts

relatedtoareviewofhisExecutiveServiceAgreement(ESA).

FulldetailswillbesetoutintheFY25Directors’RemunerationReportoncealltheawardshavebeengranted.

128 DR. MARTENS PLC ANNUAL REPORT 2024

REMUNERATION REPORT CONTINUED

Retirement of Executive Director (audited)

On14April2023,weannouncedthatJonMortimorewouldberetiringasChiefFinancialOfficerwiththeagreementoftheBoardandon

thatbasistheCommitteeconfirmedhis‘goodleaver’statusforthepurposesoftheGBSandLTIP.Whilsthisnoticeperiodrequirednine

months’noticewearegratefultoJonforagreeingtoremainactivelyemployedfulltimewiththebusinessforlongertosecureasmooth

yearend.

Onthisbasis,Joncontinuedtoreceivesalary,benefitsandpensionuntilhelefttheCompanyon31March2024.Jonwillreceivenofurther

contractualpaymentsafterhisretirement.

JonwaseligibletoparticipateintheFY24GBS.However,asdetailedonpage117,theExecutiveDirectorshavewaivedtheirentitlement

toanypayoutundertheplan.

Jonwillretainanyshareawardsgrantedtohimuptothedatehisretirementwasannounced.BonussharesgrantedtohiminJuly2022

areundertwo-yearrestrictionuntilJuly2024.JonwasnotgrantedaFY24LTIPawardinJune2023.OutstandingLTIPawardsfrom

previousgrantswillremaincapableofvestingontheiroriginalvestingdates,subjecttoperformanceconditionsandpro-ratedtoreflectthe

periodfromtheirdateofgranttotheendofhisperiodofemploymentinaccordancewiththerulesoftheplan.Theusualtwo-yearpostvest

holdingperiodwillapplytoanynetoftaxvestedsharesundertheLTIP.AwardsheldbyJonwillremainsubjecttomalusandclawbackin

accordancewiththeplanrules.Asdetailedpreviously,theLTIPawardgrantedin2021atadmissionwillnotvest.

Jonisrequiredtomaintain,fortwoyearsafterleavingtheCompany,aminimumshareholdingequaltotheshareholdingrequirement

hewassubjecttoduringemployment(300%ofhisbasesalary).

ThesearrangementsareinlinewithJon’sESAandtheDirectors’RemunerationPolicy.

Director interests and Executive Directors’ shareholding requirements (audited)

Duringemployment,ExecutiveDirectorsarerequiredtobuildandmaintainashareholdingequivalentto300%oftheirbasesalary.

Post-cessationofemployment,ExecutiveDirectorsmustretainsharestothevalueof300%ofsalaryforaperiodoftwoyearsin

accordancewiththeRemunerationPolicy(whichnowappliestoJonMortimore,theformerCFO).TheshareholdingsofKennyWilson

andJonMortimoreexceedthisrequirementsignificantly.

ThetablebelowsummariseseachDirector’scurrentshareholding,includingsharessubjecttoadeferralorholdingperiodand

performanceconditions,andwhethertheshareholdingrequirementhasbeenmet.

Intheperiod1April2024to29May2024,KennyWilsonacquired698sharesduetohisparticipationintheBAYEplan.Asaresult,he

increasedthenumberofbeneficiallyownedsharesby349(PartnershipShares)to11,533,506shares.Healsoincreasedhissharessubject

tocontinuedemploymentby349(MatchingShares)to2,322.InthesameperiodJonMortimoreacquired318sharesduetohisparticipation

intheBAYEplanandcontributionmadepriortohisretirement.Asaresult,heincreasedthenumberofbeneficiallyownedsharesby159

(PartnershipShares)to6,379,205shares.Healsoincreasedhissharessubjecttocontinuedemploymentby159(MatchingShares)to

2,132.TherewerenootherchangesintheDirectors’interestsassetoutbelowbetween1April2024and29May2024.

Director

Beneficially

owned shares on

31 March 2023

Beneficially

owned shares on

31 March 2024

Shares subject to

continued

employment

Unvested shares

subject to

performance

conditions

Shareholding

requirement

(% of salary)

Current

shareholding

(% of salary)

Requirement met

KennyWilson 11,221,559 11,533,157 1,973 2,864,763 300% 1,376% Yes

JonMortimore 6,377,396 6,379,046 1,973 850,916 300% 1,184% Yes

PaulMason 7,875,000 7,875,000 – – N/A N/A N/A

LynneWeedall 17,054 21,054 – – N/A N/A N/A

IanRogers 20,270 20,270 - - N/A N/A N/A

AndrewHarrison N/A 18,374 – – N/A N/A N/A

RobynPerriss 89,054 99,328 – – N/A N/A N/A

IjeNwokorie 5,405 5,405

– – N/A N/A N/A

TaraAlhadeff 0

– – N/A N/A N/A

Notes

1. ThetotalnumberofinterestsinsharesintheCompanyoftheDirectorincludinginterestsofconnectedpersons.ThisalsoincludesPartnershipSharesandDividendShares

undertheBAYEandBonusSharesundertheGlobalBonusSchemewhicharesubjecttoatwo-yearholdingperiod.

2. ThisincludesBAYEMatchingShareswhicharesubjecttocontinuedemployment(aforfeitureperiodofthreeyears)butarenotsubjecttoperformanceconditions.

3. Forthepurposesofcompliancewiththeshareownershipguidelines,onlybeneficiallyownedsharesarecounted.ThisincludesanyPartnershipSharesandDividend

SharesundertheBAYE,andBonusSharespurchasedundertheGlobalBonusPlan.UnvestedsharesintheLTIParenotcounted.Thisfigureiscalculatedusingthebase

salaryon31March2024,andasharepriceon29March2024of87.75pence.

4. IjeNwokoriesteppeddownfromtheBoardon1February2024totakeupthepositionofChiefBrandOfficerwithimmediateeffect.Hisinterestinsharesisshownatthisdate.

5. TaraAlhadeffisaPartneratPermiraAdvisersLLP,andtheynominatedherforappointmenttotheBoard.IngreLuxS.àr.l(whichiswhollyownedbyPermiraAdvisersLLP)

hold369,942,440sharesinDr.Martens.

Inthetablesbelow,wehavesummarisedtheoutstandingawardsfortheExecutiveDirectorsincludedintheDirectors’shareinteresttable.

GOVERNANCE

129DR. MARTENS PLC ANNUAL REPORT 2024

LTIP awards (awards subject to performance conditions)

Grant date

Share price

at grant

Type of

award

No of shares

under the

award

01/04/2023

Granted

during the

year

Vested

during the

year

Exercised

during the

year

Lapsed

during the

year

No of shares

under the

award

31/03/2024

End of

performance

period

Kenny

Wilson

2023LTIP 30/06/2023 119.3p

Conditional

shares – 1,541,114 – – – 1,541,114 31/03/2026

2022LTIP 15/06/2022 238.4p

Conditional

shares 756,082 – – – – 756,082 31/03/2025

2021LTIP 09/02/2021 513.0p

Conditional

shares 567,567 – – – – 567,567 31/03/2024

Total 1,323,649 1,541,114 2,864,763

Jon

Mortimore

2022LTIP 15/06/2022 238.4p

Conditional

shares 486,052 – – – – 486,052 31/03/2025

2021LTIP 09/02/2021 513.0p

Conditional

shares 364,864 – – – – 364,864 31/03/2024

Total 850,916 850,916

1. AsexplainedintheProspectusandalsointhe2021AnnualReport,thenumberofsharesawardedwascalculatedusingtheoffersharepriceof370.0p.Theclosingshare

priceonthedateofgrantwas513.0p.

Performance graph and table

Dr.Martens’sharesbeganunconditionaltradingontheLondonStockExchange’smainmarketon3February2021.Thechartbelowshows

theTSRperformanceof£100investedinDr.Martensfrom3February2021(usingtheofferpriceof370ppershare)to29March2024against

theFTSE350index(excludinginvestmenttrusts).TheFTSE350indexisconsideredanappropriatecomparisonasDr.Martensisa

constituentoftheindex.

£20

£40

£60

£80

£100

£120

£140

£160

Value £ (Rebased)

Dr. Martens FTSE 350

03/02/2021 31/03/2021 31/03/2022 31/03/202431/03/2023

FY24 FY23 FY22 FY21

CEOsingletotalfiguretotalremuneration(£000s) 788 773 1,656 259

GBS(as%ofmaximumopportunity) 0% 0% 65% 75%

Long-termincentivevesting(as%ofmaximumopportunity) 0% – – –

1. FY21wasbasedonperiodfromadmissionon29January2021to31March2021.

130 DR. MARTENS PLC ANNUAL REPORT 2024

REMUNERATION REPORT CONTINUED

Change in Directors’ and employee remuneration

Thetablebelowsetsoutthepercentagechangeinbasesalary,valueoftaxablebenefitsandbonusforalltheDirectorscomparedwiththe

averagepercentagechangeforemployees.

Percentage change in FY23 – FY24 Percentage change in FY22 – FY23 Percentage change in FY21-FY22

Salary

Taxable

benefits

Global Bonus

Scheme Salary

Taxable

benefits

Global Bonus

Scheme Salary

Taxable

benefits

Global Bonus

Scheme

KennyWilson 2% (1%)

0% 3% (1%)

(100%) 0% 0% 15.7%

JonMortimore 2% 1%

0% 3% 0% (100%) 0% 0% 71.6%

PaulMason 2% – – 3% – – 0% – –

LynneWeedall 2% – – 3% – – 0% – –

IanRogers 2% – – 3% 0%

RobynPerriss 2% – – 12%

– – 2.9% – –

IjeNwokorie 2% – – 3% – – 0% – –

AndrewHarrison N/A – – N/A N/A

TaraAlhadeff – – – – – – – – –

Employees

5,6

5.8% (17. 6%) (23.8%) 7.6% 19.4% (91.3%) 7.0% 34.8% 3 7.5%

1. InFY21,thesingletotalfigureofremunerationtablewasbasedontheperiodfromadmissionon29January2021to31March2021,whereasinFY22thetablewasbased

onthefullfinancialyearending31March2022.Asaresult,thefiguresfortheprioryearareannualisedbasedonthechangeintheactualsingletotalfigureofremuneration

forFY22comparedtotheannualisedsingletotalfigureofremunerationforFY21forbothDirectorsandemployees.

2. InJanuary2022(FY22),RobynwasappointedtheNon-ExecutiveDirectorresponsibleforemployeeengagementtorepresenttheemployees’voicesattheBoardlevel.

ToreflecttheincreasedtimethatRobynisspendingonhercommitmentandresponsibilities,theBoardintroducedanadditionalfeeof£10,000perannumforthisroleon

1January2022.

3. InNovember2022,Kennyoptedtoreducehisprivatehealthcarefromfamilycovertopartnercover.HecontinuedtoreceivepartnercoverthroughoutFY24.

4. Thisreflectstheincreasedcostofprivatehealthcare;therewerenoadditionalbenefitsreceived.

5. TheaveragepercentagechangeforemployeesiscalculatedwithreferencetoUKbasedemployeesonlyusingthesamedatausedforCEOpayratiopurposes.This

populationhasbeenselectedasitalignstothegroupfortheCEOpayratioandsoenablesamoremeaningfulinternalcomparison.Therearenoemployees,otherthan

ExecutiveDirectors,inthelistedparentcompany.

6. InordertoshowamoredirectcomparisontotaxablebenefitsfortheExecutiveDirectors,thebasisforthepercentagechangeintaxablebenefitsforemployeeshasbeen

updatedfromprioryeardisclosurestoexcludepayrollallowancespaidtosomeemployeeswhicharenotstrictlyconsideredasbenefits.ThepercentagechangeforFY23–

FY24reflectstheremovalofacarallowancefornewjoinersatexecutivelevel(excludingtheExecutiveDirectors).

CEO pay ratio

UKregulationsrequirecompanieswithmorethan250UKemployeestopublisharatiotoshowCEOtotalpayversusthatofitsUK

employees.Inlinewiththeseregulations,wehaveprovidedtheratiocalculatedusingMethodAdeterminedbytheregulations,under

whichasingletotalfigureofremunerationisderivedforeachemployeeandthequartilesanalysed.Thismethodis,intheCommittee’s

view,themostcomprehensiveandaccuratereflectionoftheremunerationpictureacrossouremployeepopulation.

Year ended Method Lower Quartile Median Upper Quartile

31March2024 A 31:1 26:1 15:1

31March2023 A 32:1 27:1 15:1

31March2022 A 77:1 60:1 31:1

31March2021 A 76:1 62:1 35:1

ThepayfortheCEOandtheemployeesatthepercentilesissetoutbelow:

£’000s CEO Lower Quartile Median Upper Quartile

Basicsalary 735 23.0 26.2 47.0

Totalpay 788 25.7 30.4 53.5

Theemployeepayfigureswerecalculatedbyreferencetoandasattheyearended31March2024usingfull-timeequivalentdatafor

relevantemployeesinserviceasat31March2024.InFY24,fortheCEOtherewasamodestsalaryincrease(lowerthantheworkforce

rate),nopayoutunderthebonusforthesecondyearrunningandnopayoutundertheLTIPawardgrantedonadmission.Thisisthereason

whytheratioofhisremunerationtotherestofthewiderworkforceissimilartothatinFY23(whentheCEOalsoreceivedazerobonus

payout)butlowercomparedtoFY22,whenabonuswaspayabletotheCEO.

TheCommitteeiscomfortablethatthepayratioshownaboveisconsistentwithourpay,rewardandprogressionpoliciesfortheGroup’s

UKemployeesasawhole.TheCEO’sremunerationpackageismoreheavilyweightedtowardsvariablepaythanthatofthewider

workforce,duetothenatureoftherole,andmeanstheratioislikelytofluctuatedependingontheperformanceofthebusinessandthe

relatedoutturnsoftheincentiveplansineachyear.

GOVERNANCE

131DR. MARTENS PLC ANNUAL REPORT 2024

Relative importance of the spend on pay

ThetablebelowshowstheGroup’sexpenditureonemployeepaycomparedtodistributionstoshareholdersfortheyearended31March2024,

comparedtoFY23:

FY24

£m

FY23

£m % Change

Distributiontoshareholders 57. 8 58.4 (1.0)

Totalemployees’pay 126.7 1 17.5 7.8

Implementation of Policy in FY25

ThesectionbelowsetsouttheplannedimplementationoftheRemunerationPolicyinFY25.

Executive Director remuneration

BASE SALARY

ThesalaryforKennyWilsonwasnotincreasedforFY25.ThesalaryforGilesWilsonwasagreedaspartofhisrecruitment.

Executive Director

Base salaries

FY25 FY24 % Change

KennyWilson £735,420 £735,420 0%

GilesWilson £485,000 – –

PENSION AND BENEFITS

ExecutiveDirectorswillcontinuetoreceiveacashinlieuofpensioncontributionof5%ofsalaryinlinewiththerateapplyingtothemajority

oftheUKworkforce.Otherbenefitsincludefamilyprivatehealthcover,lifeassurancecover,groupincomeprotectionandcarallowance.

GLOBAL BONUS SCHEME

ThemaximumGBSopportunitywillbeinlinewithPolicy,being200%ofsalaryfortheCEOand150%ofsalaryfortheCFO.

Performancewillbebasedonprofitbeforetax(PBT)weighted55%,thenumberofpairsofDTCbootssoldweighted20%andstrategic

objectivesrelatingtoleadershipbehaviours,branddesireandsustainability(ESG)weighted25%intotalor8.33%perobjective.The

Committeeconsidersthedisclosureoftheprecisetargetstobecommerciallysensitive,buttherewillbefullretrospectivedisclosurein

nextyear’sAnnualReport.TheRemunerationCommitteehasthediscretiontoadjusttheformulaicGBSoutcomeifitbelievesthatsuch

outcomeisnotafairandaccuratereflectionofbusinessperformance.

One-thirdofthepost-taxGBSawardedwillbeusedtopurchaseshares,whichmustbeheldfortwoyearsfromthedateofacquisition.

MalusandclawbackprovisionsapplyasoutlinedintheRemunerationPolicy,fromthedateofdeterminationofbonusoutturn,andforupto

threeyearsthereafter.

LONG TERM INCENTIVE PLAN

TheCommitteehasnotyetfinalisedtheawardlevelsorpreciserangeoffinancialtargetswhichwillapplytotheawards.Oncetheseare

determined,theCommitteewillpublishthisinformationbyRNSannouncementwhentheExecutiveDirectors’awardsaremade,and

withinnextyear’sDirectors’RemunerationReport.

Whenassessingtheperformanceoutcome,theRemunerationCommitteewillhavethediscretiontoaltertheformulaicvestingifit

believesthatitisnotafairandaccuratereflectionofbusinessperformance.

Awardsaresubjecttoatwo-yearpost-vestingholdingperiod.Malusandclawbackprovisionsapplyforuptothreeyearsfollowingvesting.

132 DR. MARTENS PLC ANNUAL REPORT 2024

REMUNERATION REPORT CONTINUED

Non-Executive Director remuneration

InlinewiththeCEO,theChairandNon-ExecutiveDirectors’feeshavenotbeenincreasedfortheyearendingFY25.Thefeesaresetout

infullinthetablebelow.

Non-Executive Director

Fees

FY25 FY24 % Change

ChairoftheBoard £341,970 £341,970 0%

Non-ExecutiveDirectorbasefee £68,078 £68,078 0%

SeniorIndependentDirector £15,759 £15,759 0%

AuditandRiskCommitteeChair’sfee £17,755 £17,75 5 0%

RemunerationCommitteeChair’sfee £17,019 £17,01 9 0%

EmployeeEngagementDirector £10,506 £10,506 0%

All-employee share incentives

TheExecutiveDirectorswillbeeligibletoparticipateinanyall-employeeshareplanoperatedbytheCompanyonaconsistentbasisto

otherUK-basedemployees.KennyWilson(andJonMortimoreto31March2024)electedtoparticipateinYourShare,BuyAsYouEarn

(BAYE),anHMRCApprovedSIP,underwhichparticipantsinvestfromtheirgrossmonthlyincomeintoPartnershipSharesandreceive

a1:1MatchingShareforeachPartnershipSharepurchased.

Approval

ThisRemunerationReportwasapprovedbytheBoardofDirectorson29May2024andsignedonitsbehalfbytheRemuneration

CommitteeChair:

LYNNE WEEDALL

CHAIROFTHEREMUNERATIONCOMMITTEE

29May2024

GOVERNANCE

133DR. MARTENS PLC ANNUAL REPORT 2024

ROLE OF THE COMMITTEE

Toprovideindependentchallengeand

oversightoftheaccounting,financialand

narrativereportingandinternalcontrol

processes,riskmanagement,theInternal

Auditfunctionandtherelationshipwithour

externalauditor.

COMMITTEE MEMBERSHIP AND

COMPOSITION

TheCommitteerevieweditscomposition

duringtheyearandissatisfiedthatitis

appropriate.DuringFY24theCommittee

comprisedfourIndependentNon-Executive

Directors:LynneWeedall,IjeNwokorie,

AndrewHarrisonandRobynPerrissas

CommitteeChair.Andrewformallyjoined

theCommitteeon1May2023andwas

presentalongwitheveryotherCommittee

memberatallofitsmeetingsduringthe

year.IjesteppeddownfromtheCommittee

onhisappointmentasChiefBrandOfficer

inFebruary2024.

EmilyReichwaldwassecretarytothe

CommitteethroughoutFY24.Shewill

besucceededbyKatherineBellauas

secretarytotheCommitteewhenshe

joinsthebusinessinJune.

ThecurrentmembersoftheCommittee

andtheirattendanceatmeetingsduring

theyeararedisclosedtotheright.Full

biographiesofeachmembercanbefound

onthispageand/orpages93and94.

COMMITTEE MEMBERS DURING

FY24

Number of meetings

attended/max number

could have attended:

RobynPerriss

(Committee Chair)

5/5

IjeNwokorie

5/5

LynneWeedall 5/5

AndrewHarrison

4/5

1. Steppeddown1February2024.

2. Appointed1May2023.

3. AndrewHarrisonwasunabletoattendthe

3May2023AuditandRiskCommitteemeeting

duetopre-existingbusinesscommitments.

ThiswasnotifiedpriortotheChairoftheCommittee.

COMMITTEE COMPOSITION

As at 31March 2024

Female 67%

Male 33%

• Monitoringtheintegrityofthe

Group’sAnnualReportsandfinancial

statementsandanyotherformal

announcementsrelatingtotheGroup’s

financialperformance,andreviewing

thesignificantfinancialreporting

judgementsmadeinconnectionwith

theirpreparation.

• Monitoringandreviewingtheadequacy

andeffectivenessoftheCompany’s

internalfinancialcontrolsandinternal

controlandriskmanagementsystems.

• Overseeingandmaintainingan

appropriaterelationshipwiththe

Company’sexternalauditorand

reviewingtheindependence,

objectivityandeffectivenessof

theauditprocess.

• EnsuringthatInternalAuditarrangements

areappropriateandeffective.

• Ensuringthatfraudpreventionand

whistleblowingarrangementsare

embeddedtominimisethepotential

forfraudandfinancialimpropriety.

The Committee

covered extensive

ground over the course

of what was, in many

respects, a difficult year

for Dr. Martens.

ROBYN PERRISS

Chair of the Audit and Risk Committee

KEY RESPONSIBILITIES

LOOKING AHEAD: FOCUS AREAS FOR FY25

• EnsuringasmoothtransitiontoanewCFO.

• Oversightofcontrolandreportingrelatingtoplannedcostreductioninitiatives.

• Monitoringofworkingcapitalbalancesincludingplannedreductionininventoryholdinglevels.

• ContinuedESGmaturityandfutureCSRDreportingrequirements.

• Reviewsofkeybusinesstransformationprojects.

134 DR. MARTENS PLC ANNUAL REPORT 2024

AUDIT AND RISK COMMITTEE REPORT

AsChairoftheAuditandRiskCommittee

(theCommittee),Iampleasedtopresent

ourReportforFY24.

TheCommitteecoveredextensiveground

overthecourseofwhatwas,inmanyrespects,

adifficultyearforDr.Martens,withmixed

tradingperformancecompoundedby

macroeconomicuncertaintyandachallenging

consumerenvironment,particularlyinthe

USA.Thesepressuresbroughttheimportance

oftheCommittee’sroleintosharprelief,

particularlyourprovisionofassurancetothe

Boardthroughourindependentchallengeand

oversightoftheGroup’saccounting,financial

andnarrativereporting,riskmanagement

andinternalcontrolprocesses.

OurReportisstructuredtopresentan

overviewofhowwefulfilledourroleduring

FY24,includingouroversightoftheInternal

Auditfunctionandmanagementofthe

relationshipwithourexternalauditor,

PricewaterhouseCoopersLLP(PwC).

Itcovers:

• howwesupportedthebusinessin

respondingtothechallengesithasfaced

throughouractivities,discussionsand

debatesatourmeetingsduringtheyear;

• ourworkinoverseeingandproviding

assurancetoourBoardinrespectofthe

integrityofourreporting;

• ourprocessforreviewing,withthe

assistanceofmanagement,theFY24

AnnualReportforthepurposesof

assessingwhether,intheviewofthe

Committee,itrepresentedafair,

balancedandunderstandableaccountof

theGroup’spositionandprospects;and

• howwereviewedandassessedthe

effectivenessoftheexternalandinternalaudit

processes,aswellasofourperformance

asaCommittee,duringtheyear.

Asever,ourReportisbestreadin

conjunctionwiththefinancialstatements

andtheiraccompanyingnotes,whichcan

befoundfrompage160.

Activities in FY24

OurprogrammeofworkinFY24covered

thepriorityfocusareasweidentifiedand

disclosedinourFY23AnnualReport,our

regularannualreviewsoftherangeofareas

withinourremitanddeeperdivesintospecific

issues,whichIwillsummarisehereand

aboutwhichmoreinformationissetoutinthe

Committee’sReport.Asummaryoftherange

ofitemsweconsideredasaCommitteeat

eachofourmeetingsduringtheyearcan

alsobefoundinthetimelineonpage137.

Overthecourseoftheyearwereceived

detailedbusinessupdatesfromtheITand

InformationSecurity,Compliance,Data

Protection,TaxandTreasuryfunctions,

reviewedandapprovedanumberofnewor

revisedGrouppoliciesandapprovedour

annualTaxStrategyStatement.Wealso

undertookourregular‘businessasusual’

reviewsofthefullandhalfyearaccounts

andtheircorrespondingannouncements,

externalauditpolicies,theeffectivenessof

theexternalauditorandtheInternalAudit

function,whistleblowingandanti-fraud

procedures,riskmanagementprocesses

andtheGroupRiskRegister.

Thefollowingsectionsprovidemoreinsight

intothekeyissuesweconsideredasa

CommitteeoverthecourseofFY24.

Navigating the CFO transition

DuringtheinterimperiodbetweenJon

Mortimore’sretirementattheendofthe

financialyearandGilesWilsonformally

joiningtheBoardon13May2024,the

Committeeprovidedadditionaloversight

supporttotheFinancePanelestablished

bythebusinesstocovertheperiodwhereit

hadnoCFOinsituandtoensurecontinuity,

transparencyandcollectiveownershipof

therangeofactivitieswhichusuallyfall

withintheirremit.

AsChairoftheCommittee,Ikeptinregular

contactwithmanagementduringthistime

toprovidesupportandguidanceasneeded.

Theroughlytwomonthperiodduringwhich

theFinancePaneloperatedalsoprovidedus

asaCommitteewithgreatervisibilityof,and

excellentinsightinto,the‘benchstrength’

ofthewiderFinanceleadershipteam.Iam

pleasedthatthispotentiallytrickyperiod

wasultimatelynavigatedsmoothlyand

commendthemembersoftheFinance

Panelandthosewhosupportedthemfor

theirhardworkandprofessionalism,without

whichitwouldnothavebeenpossible.

AdescriptionoftheroleoftheFinance

Panelcanbefoundonpage136.

WithGilesnowhavingjoined,bothIandmy

fellowCommitteememberslookforward

toworkingwithhimthroughoutFY25.

Governance and sustainability

reporting

TheCommitteereceivedupdatesatvarious

pointsduringtheyearontheworkunderway

topreparethebusinessfortherangeof

incomingcorporategovernanceand

sustainabilityreportingrequirements.

Withthesubsequentwithdrawalofthedraft

reportingregulationsbytheUKGovernment

inOctober2023,theCommitteereceived

updatesfromtheInternalAuditfunction

ontherangeofactivitiesthatwerealready

underwayinpreparationforthenew

requirementsandwhichwouldbecontinued

ona‘noregrets’basis,includingfurther

workonESGassurance,developinginternal

controlsandfraudriskmanagement.

Intermsofclimateandsustainability

reporting,wecompletedourannualreview

oftherequirementsoftheTaskForceon

Climate-relatedFinancialDisclosures

(TCFD).WiththesupportofourSustainability

team,weconsideredtheimpactofclimate

changefromariskperspectiveandthe

qualityandconsistencyofourreporting

againsteachoftheTCFDpillars.

Wealsoconsideredthedeveloping

ESGreportinglandscapeinmoredetail,

particularlytheincomingEUCorporate

SustainabilityReportingDirective(CSRD)

andenhancedESGassurance

requirements.Wereceivedadetailedreport

onthesetopicsfromPwCanddiscussed

theimplications,timingsandapproach

topreparingforthenewrequirementsin

depth.Althoughstillsometimeaway,the

implementationofthisnewdirectivewillbea

significant,cross-functionalundertakingfor

Dr.Martensandallcompaniestowhichitwill

apply.Assuch,itwillremainakeyareaof

focusfortheCommitteefortheforeseeable

future.Moreinformationcanbefoundinthe

SustainabilityReportonpages46to74.

Focus on internal controls

Internalcontrolswereanareaofparticular

focusfortheCommitteethroughoutFY24.

WereceivedreportsfromPwCandthe

InternalAuditfunctionanddiscussed

inventorycontrolsintheUSAandcontrols

overtherecordingofshippingrelatedcosts.

Reviewsofinventorycontrols,particularly

inourUSAdistributioncentre,wereakey

priorityfortheInternalAuditfunctiongiventhe

issuesweexperiencedinthepreviousyear

andourongoingelevatedinventorylevels.

WereviewedtheITgeneralcontrols

roadmapandwerepleasedtonotethe

Group’sincreasingmaturationinthiskey

area.Wealsocontinuedourmonitoringof

developmentsandprogressintheGroup’s

cyberandITsecuritymaturity,considered

theimpactofemergingtechnologiessuch

asgenerativeAIandapprovedanumberof

relatedinternalpoliciestotightenthelevelof

internaloversightandguidance.Moreinsight

onITcontrols,ourCyberStrategyandthe

evolvingtechnologylandscapecanbefound

intheQ&AwithourChiefTechnologyOfficer,

GrahamCalder,onpage139.

GOVERNANCE

135DR. MARTENS PLC ANNUAL REPORT 2024

Internal Audit programme

TheCommitteereceivedregularreports

fromtheInternalAuditfunctiononthe

FY24InternalAuditplan.TheInternal

AuditreviewsconductedduringFY24

encompassedarangeofareasandwere

conductedwithasignificantfocuson

controls,includingtheaforementioned

reviewsofinventoryandITcontrolsaswell

ascontrolsaroundsocialmediaaccess,

payrollandfreightcosts.

Wediscussedtheprogress,findingsand

outcomesofspecificInternalAuditreviews

andtheassuranceworkundertakenonthe

Committee’sbehalfbytheInternalAudit

functioninrelationtokeystrategicprojects

ateachofourmeetingsinFY24.More

informationontheroleandeffectivenessof

theInternalAuditfunctionandtheiractivities

duringFY24canbefoundonpage142.

Risk

Intermsofourconsiderationsaround

theCompany’skeyrisks,weaddeda

newprincipalriskof‘macroeconomic

uncertainty’toensurewehadappropriately

capturedtheimpactoffactorsincluding

geopoliticalinstabilityonconsumer

demand,costinflationandtrading

conditionsinourkeymarkets.Wealso

agreedtoadjustourassessmentsofa

numberofexistingriskstobetterreflect

ourpresentcircumstances,including

increasedorganisationalchangerisklinked

toournewBoardandGLTappointments.

FY24 audit

FY24wasPwC’ssecondyearasour

externalauditor.Iampleasedtoreportthat

theFY24auditwascompletedsmoothly

andevolvedincertainkeyareas,including

increasedusageofdigitaltoolstosupport

elementsoftheauditprocess.Therewas

agoodlevelofchallengeonkeyareasof

judgementandappropriateidentification

ofourkeyrisks.Theworkingrelationships

betweenthePwCandDr.Martensteams

remainconstructiveandstrengthenedbya

healthydegreeoftrustandrespect.More

informationabouttheCommittee’srolein

overseeingtherelationshipwithand

reviewingtheeffectivenessoftheexternal

auditorduringtheyearcanbefoundon

page141.PwC’sIndependentAuditor’s

Reportisavailablefrompage150.

Areas of accounting judgement,

going concern and viability

ToassisttheCommitteeinfulfillingourcore

responsibilitiestosatisfyourselvesthatthe

AnnualReport(asawhole)offersafair,

balancedandunderstandableassessment

oftheCompany’spositionandfuture

prospectsandthattheaccountsprovide

atrueandfairviewoftheCompany’s

financialaffairs,weconsideredthe

significantfinancialjudgementsmade,

andanykeyaccountingissuesidentified,

bymanagementoverthecourseofthe

year.Weconsideredtheseindetail,

alongsideourgoingconcernandviability

scenariosinthecontextofthechallenges

impactingthebusinessduringtheyear

andwithaneyetowardsFY25asayear

inwhichthebusinesswould‘reset’for

thefuture.Fulldetailsoftheseandthe

Committee’sassessmentsofeach

canbefoundonpages143.Ourgoing

concernandviabilitystatementscan

befoundonpages44and45.

Committee effectiveness

InFY24weagaincompletedourannual

reviewoftheCommittee’seffectiveness

aspartoftheinternalBoardEvaluation

process.Weconsideredandreflected

onourassessmentofoureffectiveness

subsequenttotheyearend,duringour

meetinginearlyApril2024.Iampleased

thatourreviewconcludedthatwe

continuetooperateeffectivelyasa

CommitteeandtoprovidetheBoard

withtherequiredlevelofassurance

throughourwork.Moreinformation

canbefoundonpage142.

Future priorities

LookingaheadtoFY25,therearea

numberofpriorityareasonwhichthe

Committeewillbefocusingitsattention.

Anumberofthemostimportantare

listedonpage134.Additionallyand

inrecognitionoftheongoing,difficult

tradingenvironmentcombinedwith

anumberofsignificantorganisational

changes,particularlythoseinkey

governanceroles,wewillsupportand

monitortheprogressofournewsenior

appointmentstohelpensureasmooth

transitionandanongoing,effective

controlenvironment.

Wewillalsocontinueourmonitoringof

plannedinvestmentandprogressinkey

workstreamsdesignedtosupportbetter

datamanagementandmoreresilient

andscalableplatforms.ESGremains

akeyfocusareaandinFY25thiswill

includetheoutcomeandnextsteps

oftheproposeddoublemateriality

assessmentaswellasongoing

complianceandreportingrequirements.

ROBYN PERRISS

CHAIROFTHEAUDIT

ANDRISKCOMMITTEE

29May2024

FINANCE PANEL

ROLE AND MEMBERSHIP OF THE PANEL

TheFinancePanel(thePanel)was

establishedinMarch2024tosecure

continuityinrespectofkeymattersfalling

withintheremitoftheChiefFinancialOfficer

duringtheperiodbetweenJonMortimore’s

retirementandGilesWilson’sformalstart

date.TheestablishmentofthePanelwas

agreedbytheBoardwithoversightofits

activitiesdelegatedtotheCommittee.The

Paneloperatedundertermsofreference

definingitsmembershipandresponsibilities.

ForthedurationofthePanel’soperation,

itsmemberscomprisedtheChiefOperating

Officer,CompanySecretary,Investor

RelationsDirector,DirectorofFinance

Control,FinanceDirectorEMEA,Directorof

SupplyChainFinance,DirectorofFP&Aand

CorporateFinanceandtheGeneralCounsel.

GOVERNANCE

ROLE AND MEMBERSHIP OF

THE COMMITTEE

Detailsofthecomposition,roleandrangeof

responsibilitieswithintheCommittee’sremit

aresetoutonpage134.Moredetailsonthese

areavailableatwww.drmartensplc.com,

wheretheCommittee’stermsofreference

canalsobefound.

COMPETENCE OF THE COMMITTEE

ThemembersoftheCommitteebringa

breadthoffinancial,commercialandsector

expertise,whichwasaugmentedduringthe

yearwiththeappointmentofAndrewHarrison.

TheCommitteeremainssatisfiedthatitmeets

itsresponsibilitiesundertheUKCorporate

GovernanceCode(the‘Code’)andretainsan

appropriatelevelofcompetencerelevantto

thesectorinwhichtheCompanyoperates.

CHAIR OF THE COMMITTEE

RobynPerrisshaschairedtheAudit

andRiskCommitteesinceJanuary2021.

Herresponsibilitiesincludesettingthe

Committee’sagendaandforwardplanner,

maintainingrelationshipsbetweenthe

Company’sseniorleadershipandtheexternal

auditor,ensuringthatanyrelevantauditissues

arereportedbacktotheBoardeffectively

andinatimelyfashion,andreportingto

shareholdersthroughtheAnnualReport.

RECENT AND RELEVANT FINANCIAL

EXPERIENCE

TheCommitteeissatisfiedthatRobynPerriss,

aCharteredAccountant,formerFinance

DirectorofaFTSE100companyandan

experiencedAuditCommitteeChair,hasrecent

andrelevantfinancialexperienceandshehas

beendesignatedasthefinancialexperton

theCommitteeforthepurposesoftheCode.

EXPERIENCE AND QUALIFICATIONS

OF EACH MEMBER OF THE

COMMITTEE P93AND94

136 DR. MARTENS PLC ANNUAL REPORT 2024

AUDIT AND RISK COMMITTEE REPORT CONTINUED

Early May 2023

• Reviewed Audit and Risk

Committee effectiveness.

• Reviewed the effectiveness

of the Internal Audit function.

• Reviewed an Internal Audit report

and the FY24 Internal Audit plan.

• Noted audit update report from

PricewaterhouseCoopers (PwC).

• Reviewed updates on the Group

Finance function’s market visit to

South Korea, IT general controls,

Treasury, insurance, whistleblowing

and compliance.

• Reviewed early drafts of the

Committee’s report and TCFD

disclosures for the FY23 Annual Report.

Late May 2023

• Reviewed FY23 draft Annual Report

(including accounting judgements,

going concern and viability, and

whether the report was fair, balanced

and understandable) and Full Year

Results announcement.

• Noted PwC’s external audit report.

• Reviewed external auditor

effectiveness.

• Reviewed internal controls.

• Reviewed Internal Audit and TCFD

reporting updates.

• Noted an update on the intended

Audit and Assurance Policy approach.

July 2023 – AGM

Resolutions to re-appoint PwC

as external auditor and renew

the authority for the Directors to

determine their remuneration

formally approved by shareholders.

September 2023

• Reviewedahalf-yearauditreview

planningreportfromPwC.

• NotedanupdatefromPwCon

developingESGreportingand

assurancerequirements.

• NotedupdatesonInformation

Securityandprojectstoimprove

businesscriticalITsystems.

• ReviewedanInternalAudit

update,includingongoingwork

onESGassurance.

• Notedafurtherprogressupdate

ontheITgeneralcontrolsactionplan.

October 2023

Withdrawal of the Companies

(Strategic Report and Directors’

Report) (Amendment) Regulations

2023 announced.

November 2023

• Noted FY24 half year accounts

(including accounting judgements

and going concern) and Half Year

Results announcement.

• Reviewed the report on the half year

audit review from PwC.

• Reviewed an Internal Audit update.

• Noted the withdrawal of the UK

Government’s new reporting

regulations and considered the

implications on the Company.

• Approved global AI and data

retention policies at the

recommendation of the

Operating Committee.

January 2024

• Reviewed an update from the

Tax team, including tax strategy

and horizon scanning.

• Approved the FY24 tax

strategy statement.

• Reviewed and approved the FY24

external audit plan.

• Reviewed an Internal Audit update,

including risks and risk management.

• Reviewed an update on data

security maturity.

• Reviewed the Committee’s

terms of reference.

• Reviewed the Non-Audit

Services Policy.

• Approved the Group-wide

Conflicts of Interest Policy.

• Approved the forward agenda

planner for FY25.

Post year-end

• ReviewedAuditandRisk

Committee,InternalAuditand

externalauditoreffectiveness

andtheFY24AnnualReport.

• Oversawtheoperationsofthe

FinancePanelestablishedtomanage

theperiodwherenoCFOwasinsitu.

AUDIT AND RISK COMMITTEE ACTIVITIES TIMELINE

HOW THE COMMITTEE OPERATES

TheCommitteemetfivetimesduringFY24,

witheachmeetingattendedbyafull

complementofCommitteemembers.

Meetingsarescheduledtoalignwithkeydates

intheGroup’sfinancialcalendarandin

accordancewithaforwardplanner,developed

bytheCommitteeChairandtheCompany

Secretary.Thisprovidesclarityinrespectofthe

plannedstructureoffutureagendasandthe

mattersonwhichtheCommittee’sattentionwill

focusoverthecourseoftheyear.Italsoassists

theCommitteeinensuringitdevotessufficient

timetodiscussingthekeytopicswithinitsremit

anddischargingitsresponsibilitiesinfull.

RepresentativesfromexternalauditorsPwCare

invitedtoattendeachmeeting,togetherwiththe

ChairoftheBoard,theChiefExecutiveOfficer,

theChiefFinancialOfficer,TaraAlhadeff,the

CompanySecretaryandtheHeadofInternal

AuditandRisk.Thismeansthatamajorityof

BoardmembersarepresentatCommittee

meetings,whichconcludewithprivate,

‘in-camera’sessionswiththeCommitteeand

PwCbutwithouttheExecutiveDirectorspresent.

Outsideoftheannualcycleofscheduled

meetings,theCommitteeChairwillregularly

settimeasidetoseektheviewsofthe

externalauditorsandtheHeadofInternal

AuditandRiskonspecificmattersof

relevanceorconcern.Additionally,the

CommitteeChairmaintainsregulardialogue

withtheChiefFinancialOfficer,Company

SecretaryandothermembersoftheFinance

andmanagementteamsbetweenmeetings.

COMPETITION AND MARKETS

AUTHORITY (CMA) ORDER COMPLIANCE

TheCommitteeconfirmsthattheCompany

hascompliedwiththeprovisionsofthe

StatutoryAuditServicesforLargeCompanies

MarketInvestigation(MandatoryUseof

CompetitiveTenderProcessesandAudit

CommitteeResponsibilities)Order2014

throughoutitsfinancialperiodended31March

2024anduptothedateofthisReport.

GOVERNANCE UPDATES

TheCommitteeiskeptupdatedonany

developmentswithintheaudit,corporate

governance,reportingandregulatory

landscapesthatareofrelevancetoaudit

committeesbytheexternalauditor.During

theyear,theCommitteealsoreceived

updatesonarangeoftopicsincluding:

• DevelopingstandardsinESGreportingand

initialconsiderationsinrespectofpreparingthe

businessforincomingCSRDrequirements.

• ThewithdrawalinOctober2023ofdraft

corporatereportingregulationsandthe

relatedinitiativesthebusinessintendedto

continueona‘noregrets’basis,fromESG

assurancetofurtherdevelopmentofinternal

controlsandfraudriskmanagement.

GOVERNANCE

137DR. MARTENS PLC ANNUAL REPORT 2024

FINANCIAL AND NARRATIVE

REPORTING

FULL AND HALF YEAR RESULTS

AkeyelementoftheCommittee’sroleisto

assisttheBoardinitsoversightofthequality

andintegrityofDr.Martens’reportingandits

accountingpoliciesandpractices.Assuch,

theCommitteereviewedboththisFY24

AnnualReportandthehalfyearaccounts

priortotheirpublicationinNovember2023

onbehalfoftheBoard.

Inlinewithitstermsofreference,the

CommitteemonitoredtheGroup’syearend

andhalfyearreportingprocessestoensure

thatDr.Martensprovidedaccurate,timely

financialresultsandthatappropriate

accountingstandardsandjudgementswere

implementedeffectively.Indoingso,the

Committeereceivedanddiscussedreports

fromrelevantmembersoftheleadershipteam,

includingreportsontheGroup’smanagement

ofriskandinternalcontrols,long-termviability,

goingconcernand,inrelationtotheFY24

AnnualReportspecifically,theworkthathad

beenundertakentoensurethereportwas

fair,balancedandunderstandable.

Italsoreceivedanddiscussedregular

reportsfromtheexternalauditor.

SIGNIFICANT FINANCIAL REPORTING

ISSUES, JUDGEMENTS AND

ESTIMATION UNCERTAINTY

TheCommitteeexercisesitsjudgementin

determiningtheaccountingmattersthatare

ofparticularsignificancetothefinancial

statements.Anysuchmattersaresubjectto

discussionsbetweentheSeniorLeadership

Team,includingtheChiefFinancialOfficer

andDirectorofFinanceControl,andthe

externalauditoraspartoftheauditprocess.

Subsequenttotheyearend,theCommittee

receivedreportsfromtheleadershipteamin

relationtosignificantaccountingissues,

judgementsandkeysourcesofestimation

uncertainty,significantaccountingpoliciesand

proposeddisclosuresintheFY24Annual

Report.TheCommitteeissatisfiedthateach

hasbeenappropriatelyaddressedbythe

businessandreviewedbytheexternalauditor.

Assuch,theCommitteebelievesthatthe

judgementsmadearereasonable,thatsuitable

accountingpolicieshavebeenadoptedand

appropriatedisclosureshavebeenmadein

theaccounts.Detailsofsignificantfinancial

accountingissuesandareaswherejudgement

wasexercisedinrelationtotheFY24financial

statementsaresetoutinthetableonpages

140 and 141.

FAIR, BALANCED AND

UNDERSTANDABLE

Akeygovernancerequirementisforthe

BoardtoensurethattheAnnualReport

andfinancialstatements,takenasawhole,

arefair,balancedandunderstandableand

providetheinformationnecessaryfor

shareholderstoassesstheGroup’sposition,

performance,businessmodelandstrategy.

Toassistinmakingthisdetermination,

theBoardhasrequestedtheadviceofthe

Committee.Theprocesswefollowedas

aCommitteeinmakingourassessment

issetoutinthetabletotheright.

GOING CONCERN AND LONG-TERM

VIABILITY

TheCommitteereviewedtheGroup’sgoing

concernandlong-termviabilitydisclosures

inthisAnnualReport,togetherwiththe

reportspreparedbytheleadershipteam

insupportofeachstatement,andadvised

theBoardontheirappropriateness.

Aspartofitsreview,theCommittee

consideredtheGroup’sfutureprospects

withreferencetoforward-lookingviews

onrisk,viabilityandplanning,considering

amongotherthingsanumberofscenarios

modelledbythebusinesstoassessthe

strengthoftheGroup’sfinancing

arrangementsandcovenantcompliance.

Thegoingconcernandlong-termviability

statementswerealsoreviewedbythe

externalauditorandtheirfindingsreported

backtotheCommittee.TheCommittee

alsoreviewedanddiscussedthe

conclusionsunderpinningeachofthe

statementsthathadbeendrawnbythe

SeniorLeadershipTeam.

GOING CONCERN AND VIABILITY

P44

BOARD FIRST REVIEW

The Board received an early draft of

Strategic Report (including the Sustainability

Report) and Governance Report to allow for

feedback and guidance on the messaging,

narrative tone and overall consistency. Any

narrative or financial disclosures that the

Committee believed required additional

information or clarification were highlighted

and the necessary edits made during the

subsequent drafting phase.

EARLY DRAFT

ANNUAL REPORT

MANAGEMENT REPORTS

TO THE COMMITTEE

The Committee reviewed papers from

the Group Finance function relating to

the financial statements and narrative

reports, covering key areas of accounting

judgement, growth projections and

going concern.

FAIR, BALANCED AND

UNDERSTANDABLE REVIEW

The Committee considered a dedicated

‘fair, balanced and understandable’ paper

from management identifying the key

narrative themes of the ‘front half’ of the

Annual Report, where these were located

throughout the document and how the

project team had sought to ensure these

themes were consistent with the financial

statements in the ‘back half’ of the

Annual Report.

INDEPENDENT AUDITOR’S REVIEW

The findings of the FY24 audit, presented to

and discussed with the Committee by PwC,

concurred that management’s assessment

that the Annual Report was fair, balanced

and understandable was consistent with the

financial statements and PwC’s knowledge

obtained during the audit.

SECOND DRAFT

ANNUAL REPORT

Having completed its assessment, the

Committee concluded that the disclosures

throughout the Annual Report and financial

statements, as well as the processes and

controls underlying its production, were

appropriate and that the FY24 Annual

Report and financial statements were fair,

balanced and understandable, allowing the

Committee to provide positive assurance

to the Board to assist it in making the

statement required by the Code.

The Board’s formal statement in respect

of fair, balanced and understandable can

be found on page 138.

RECOMMENDATION

TO THE BOARD

138 DR. MARTENS PLC ANNUAL REPORT 2024

AUDIT AND RISK COMMITTEE REPORT CONTINUED

IT controls are a key part of the

Company’s overall control framework.

How have these continued to develop

over the past year?

SincetheintroductionofanERP

(EnterpriseResourcePlanning)system

atDM’sanumberofyearsago,we’ve

recognisedtheimportanceofstrongIT

controls.Inthepastyear,we’vehadan

initiativetostreamlineaccesscontrolsfor

theERPsystem,whichisanimportant

foundationforarobustcontrolframework.

We’realsolookingatcontinuous

improvementtogetthemostoutofour

existingsystems,includingopportunities

formoreautomationtoimproveefficiency

andeffectivenessofcontrolsandprocesses.

Cyber security risks are frequently

noted as a top risk for many companies.

How do you rate these for Dr. Martens

and what are the key areas of focus for

you and your team?

OurCyberStrategyisalignedtoour

DOCSbusinessstrategysittingspecifically

undertheoperationalexcellencepillar.

Wemeasureourcybersecuritymaturity

againsttheNISTCyberSecurity

Framework.WehaveachievedtheNIST

maturitylevelagreedbytheBoard,and

nowaretransitioningtothenewNIST2.0

frameworktoensurewecontinueour

maturity.Focusareasforthenextyear

includecontinuingoursecurityawareness

programmetosupportingbehaviourchange

acrosstheglobalbusiness,andfurther

improvingourmonitoringcapabilityunder

ournewExtendedManagedDetection

andResponse(MXDR)service.

Customer facing technology plays

a pivotal role for the business and is

paramount in delivering a great service.

How do you ensure system downtime

is kept to a minimum?

Technology,andspecificallythestability

ofourecommerceplatforms,playacrucial

roleinsupportingourDTCchannel,which

isalsoalignedtoourDOCSbusiness

strategy.Ithinkwe’vedoneagoodjobof

maintainingtheavailabilityofourwebsite,

includingduringpeaktradingperiods.The

focusforthenextyearistolookathowwe

canfurtherimprovetheoverallcustomer

experienceofouronlinechannel.

With the technology landscape

constantly evolving, what further

investments is Dr. Martens making?

Dr.Martensiscontinuallylookingtofurther

strengthenandevolveourtechnology

offering.Investmentscoveredbyourcurrent

businesstransformationprogrammes

includesupplychain,marketing,andfurther

enhancingouromnichannelreach.Akey

themeforalloftheseishowdowebetter

captureandusedatatoinformbusiness

decisionsandprovideanenhanced

experienceforourcustomers.

GRAHAM CALDER

CHIEFTECHNOLOGYOFFICER

The rise of generative

AI is the latest example

of how quickly today’s

risk landscape evolves.

We’ve officially entered

a new generation of risk.

GRAHAM CALDER

Chief Technology Officer

KEEPING PACE WITH

TECHNOLOGICAL

ADVANCEMENT

What potential emerging technology

risks and opportunities do you see for

Dr. Martens in the short-term future?

WeseeArtificialIntelligence(AI)asan

opportunitytodrivechangeinareasofthe

businesswherewecanworkquickerand

smarter.Thefirststepshavebeentakenby

settingpolicyandestablishingadedicated,

internalAIforumaswelooktoexploitthis

newageofopportunitywhileensuringany

potentialrisksaremanagedappropriately.

GOVERNANCE

139DR. MARTENS PLC ANNUAL REPORT 2024

SIGNIFICANT

AREA

HOW THIS WAS ADDRESSED

Revenue

recognition

Revenueaccountingpoliciesandrecognitioncriteriaareassessedinrelationtothethreekeystreams:ecommerce,

retailandwholesale.Anelementofestimationandjudgementisinvolvedinrelationto:

• cut-offandwhatproportionofrelevantecommerceandwholesalesaleshavenotyetbeenreceivedbythecustomer

atyearenddateandshouldnotberecognisedasrevenue;

• thereturnsprovisionsandtheaccountingrequirementsinrelationtovariableconsiderationunderIFRS15;

Basedonreportsanddiscussionswithmanagementandtheexternalauditor,theCommitteereviewedandassessedthe

timingofrevenuerecognitionunderIFRS15andissatisfiedthatthejudgementsmadewerereasonableandappropriate.

Inventory,

valuation and

provisions

Inventoryprovisioningrequiressignificantjudgementonwhichinventorylinesshouldbeclassedasobsolete.Inventory

age,historicalsalespatternsandtradingforecastsareusedwhenclassifyinginventorylinestobeprovidedagainst.

Thisisreassessedquarterlyinrelationtothechangingexternalandinternalenvironment.

InlightofcontinuedelevatedinventorylevelswithintheGroup,theCommitteehasconsideredthevalueofcontinuity

inventoryatyearendtogetherwiththehighmarginnatureoftheproduct.Ithasalsoreviewedthekeyprovision

assumptionsmade,includingwhereseasonalornon-continuityproductswerediscountedandsoldinFY24,thatthey

achievedpricesinexcessoforiginalcost.TheCommitteewassatisfiedthattheprovisioncalculationhasbeen

determinedinlinewiththeGroupframeworkandthattheoverallinventoryprovisionasaproportionofgrossinventory

isappropriate.

Defined

benefit

pension

scheme

AirwairInternationalLimitedoperatesapensionarrangementcalledtheDr.MartensAirwairGroupPensionPlanwhich

hasadefinedbenefitsectionwithinit.Thisclosedtonewmembersin2002andtofutureaccrualfromJanuary2006.

Theschemehasbeeninasurplusforseveralyears.

Therecognitionofthepensionschemesurplusisanareaofaccountingjudgementwhichdependsontheinterpretationof

theSchemeRulesandtherelevantaccountingstandardsincludingIAS19andIFRIC14.Thesurplusunderthescheme

isnotrecognisedasanassetbenefittingtheGroupontheBalanceSheet,astheGroupbelievesthereisuncertaintyin

relationtotherecoverabilityofanysurplus,andisthereforeunlikelytoderiveanyeconomicbenefitsfromthatsurplus.In

theGroup’sviewthereisuncertaintyoverwhethertheSchemeRulesprovidetheGroupwithanunconditionalrighttoa

refundofthesurplusfromtheschemeduetothird-partydiscretionaryinvestmentpowerswhichcoulduseupanysurplus

priortowind-up.Consistentwithpreviousyears,giventhisuncertainty,theGrouphasrestrictedthepensionscheme

surplustozero;thesurplusof£9.1m(31March2023:£11.1m)hasbeenrestrictedto£nil(31March2023:£nil).The

Committeehasconsideredtheactuarialvaluationreportandrelatedassumptions,corroboratedbytheworkperformed

bytheexternalauditor’sactuarialteam,andbelievesthattherelateddisclosuresareappropriate.

Carrying

value of

non-financial

assets

TheCommitteeconsideredtheassessmentsmadebymanagementinrelationtothecarryingvalueofnon-financial

assets,whichrequiretheuseofestimatesoffuturecashflowsanddiscountratesinordertoassesswhetherany

impairmentshouldbeappliedtothecurrentcarryingvalue.

TheCommitteereceivesdetailedannualreportsfrommanagementontheimpairmentreviewsundertakenbytheGroup

inrelationtoretailstores,goodwillandinvestment.TheseoutlinedtheGroup’sapproachtoandtreatmentofimpairment

testing,applicablevaluationmethodologiesandtherationaleformanagement’sunderlyingassumptions(forexample,

discountratesandtheallocationofgroupsupportcoststostores).Theassumptionsandprojectionspresentedby

managementwerereviewedbytheCommitteeandchallengedwherenecessary,withreferencetoinformationprovided

bythemanagementreportsanddetailedreportingprovidedbyPwC.Basedonitsreview,theCommitteeissatisfiedthat

therelevantassumptionsandprojectionsareappropriate.

NoimpairmentswerenotedbymanagementfortheFY24reportingperiodandtheCommitteeissatisfiedthatthe

Group’sconclusionsareappropriate.

Corporation

tax

ThereisjudgementinvolvedindeterminingtheGroup’scorporationtaxprovision.TheGrouprecognisesliabilitiesfor

anticipatedtaxissuesbasedonestimatesofwhethertaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersis

differentfromtheamountsthatwereinitiallyrecorded,suchdifferenceswillimpactthecurrentanddeferredtaxassets

andliabilitiesintheperiodinwhichthedeterminationismade.Managementjudgementisrequiredtodeterminethe

amountofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandleveloffuturetaxableprofits

togetherwithanassessmentoftheeffectoffuturetaxplanningstrategies.TheCommitteehasreviewedthejudgement

exercisedbymanagementinthisareaandhasdeterminedthatthetaxationchargeisappropriate.

Going

concern and

viability

Basedonpaperspreparedbymanagement,theCommitteeperformedadetailedreviewoftheGroup’sprojected

cashflows,borrowingcapacityandthecovenantswithinitsborrowingfacilitiesoverathree-yearperiod(ourviability

assessmentperiod).TheapproachwasdiscussedandagreedbytheCommitteeinMay2024byreviewingtheGroup’s

financialpositionandperformance,budgetsforFY25andthree-yearcashprojections,whichwerestresstestedunder

differentscenarioshavingregardtotheprincipalrisksfacedbythebusiness.Furtherdetailsofthescenarios,including

a‘severebutplausible’scenarioandconsiderationofpotentialmitigations,aresetoutonpage45.

TheCommitteereportedtotheBoardthat,initsview,thegoingconcernassumptionremainedappropriate.

140 DR. MARTENS PLC ANNUAL REPORT 2024

AUDIT AND RISK COMMITTEE REPORT CONTINUED

EXTERNAL AUDITOR

Audit firm: PricewaterhouseCoopers

LLP(PwC)

Date

appointed:

13July2022

Lead partner: JonathanSturges

Lead partner

tenure:

2years

Total fees in

FY24:

£2.5m(FY23:£2.0m),of

which£0.2m(FY23:

£0.1m)relatedto

non-auditservices)

EXTERNAL AUDITOR EFFECTIVENESS

TheCommittee’sresponsibilityforoverseeing

therelationshipbetweentheGroupandthe

externalauditorincorporatesanadditionalduty

toreviewtheexternalauditor’sindependence,

objectivityandoveralleffectiveness.

TheCommitteereceivedacomprehensive

auditplanfromPwCsettingoutthe

proposedscopeandareasoffocusforthe

FY24audit,aswellastheirassessmentof

thekeyareasofrisktheyhadidentified.The

auditplanandtheareasofriskidentified

bytheauditorwerereviewedand,where

appropriate,challengedbytheCommittee

toensuretheunderlyingassumptionsand

estimateswererobust.

Afterthefinancialyearend,theCommittee

conductedareviewoftheeffectivenessof

PwCanditsworkduringtheFY24audit.

AsessionledbytheCommitteeChair,

attendedbymembersoftheCompany’s

globalfinanceleadershipteamsand

dedicatedtodiscussingtheeffectiveness

ofPwC,washeldinadvanceofthe

Committee’smeetingon22May.

Toframethesediscussionsandensurethe

keytopicswerecovered,atailoredlistof

questionsfocusingon,amongotherthings,

theaudittransitionandFY24auditplan,the

workingrelationshipwithandqualityofthe

PwCteam,PwC’sunderstandingofthe

businessmodelandindustry,management

ofanyissuesidentified,auditprocessand

anyparticularareasofexcellenceand/or

challenge,wascirculatedtoattendeesin

advance.Feedbackfromthesession,

togetherwithrelevantspecificexamples,was

subsequentlydiscussedbytheCommittee.

TheCommitteealsoconsideredthequalityof

communicationandreportingitreceivedfrom

PwCduringtheyear,withaparticularfocus

onareasofsignificantjudgementandhow

theyhadaddressedhigherriskareassuchas

inventoryprovisions,storeimpairmentand

thegoingconcernandviabilityassessment.

ThereviewacknowledgedthatPwChad

approachedtheauditwithpragmatism,

flexibilityandaclearemphasisonworking

withtheCompanytoresolveissues,which

togetherwithincreasedrelianceonITgeneral

controlsandfurtheradoptionofdigitalaudit

procedures,hadbeenappreciatedbythe

Dr.Martensteam.ItfoundthatPwChad

establishedagoodunderstandingofthe

Dr.Martensbusinessandhadformedgood

workingrelationshipswiththeDr.Martens

teams.Therehadbeenahealthydegreeof

challengefromPwCinkeyareasduringthe

auditandinrespectofmanagement’s

assumptions,estimationsandjudgements.

ThePwCteamwasconsideredtobehighly

visible,organisedandsupportive.Looking

aheadtotheFY25audit,therewouldbe

opportunitiesforPwCtofurtherdeepen

theirunderstandingofthebusinessandto

continuetoembedtheirwaysofworking.

EXTERNAL AUDITOR INDEPENDENCE

AND NON-AUDIT SERVICES POLICY

TheCommitteeoverseestheprocessfor

approvinganynon-auditworkundertakenby

theexternalauditortoensuretheCompany

doesnotimpairorcompromiseitsobjectivity,

effectivenessorindependenceand

thatengagementsatisfiesallrelevant

ethicalstandards.

TheCompany’spolicygoverningthe

provisionofnon-auditservicesbyits

externalauditorreflectstheregulationsthat

prohibitexternalauditorsfromundertaking

certainnon-auditservices.AsDr.Martens

isapublicinterestentity(PIE)byvirtueof

itstransferablesecuritiesbeingadmittedfor

tradingonaregulatedmarket,theexternal

TheCommitteeconfirmsthat,overall,

theexternalauditorwaseffectivein

planningandexecutingtheFY24audit.

CONFIRMATION

auditorcanonlyprovideservicesonthe

FRC‘whitelist’ofpermissibleservicesand

thelevelofnon-auditfeesiscappedat70%

oftheaverageGroupauditfeepaidbythe

Companyoverthepreviousthreefinancial

years.TheCompany’snon-auditservices

policycomplieswiththeFRC’sRevised

EthicalStandard(2019).

Inmakinganydeterminationastowhether

toappointtheexternalauditortoprovide

certainnon-auditservicesthatarenot

prohibited,theCommitteemustconsider:

• whetheritsskillsandexperiencemake

itasuitablesupplier;

• whetherappropriatesafeguardsare

inplacetoensurethereisnothreat

toitsobjectivityandindependence;

• thenatureoftheservicetobeprovided,

includingfeesbothindividuallyand

inaggregaterelativetotheauditfee;

• theapplicationofanyrelevantRevised

EthicalStandardissuedbytheFRC.

AUDIT FEES

Feesrelatingtoservicesperformedby

theexternalauditorarereportedtoand

approvedbytheCommittee.Detailsoffees

paidtoPwCinrelationtotheFY24auditcan

befoundinthetableonpage141andinnote

5totheFinancialStatementsonpage177.

Thefeesfornon-auditservicesperformed

byPwCduringFY24,whicharedisclosed

onthispage,relatedtoworkundertakenfor

thehalfyearreview,provisionofturnover

certificates,accesstoPwCViewpoint(online

accountingandreportinginformation

platform)andanextendedstatutoryreview

forDr.MartensAirwairDenmarkApS.

TheCommitteeconfirmsitreviewed

anddiscussedfeesfortheFY24audit

andpermittednon-auditservices

withPwC(assetoutonthispage),

consideredthemtobeappropriate

andsubsequentlyapprovedthem.

CONFIRMATION

GOVERNANCE

141DR. MARTENS PLC ANNUAL REPORT 2024

INTERNAL AUDIT, RISK AND

INTERNAL CONTROL

ROLE OF THE INTERNAL AUDIT FUNCTION

TheremitoftheGroup’sInternalAudit

functionincludesresponsibilityfor

reviewing,appraisingandreportingon:

• theadequacyandeffectivenessofthe

Group’ssystemsofoperationalcontrols,

includingoutsourcedservices,financial

controls,andmanagementcontrolsand

theiroperation;

• theintegrityofprocessesandsystems,

includingthoseunderdevelopment,to

helpensurethatcontrolsofferadequate

protectionagainsterror,fraudandloss;

• theGroup’spolicies,standardsand

proceduresincludingtheiruseand

appropriateness;

• theoperationoftheGroup’scorporate

governanceandriskmanagement

arrangements;and

• significantaspectsoftheGroup’sactivity

includingmajorprojectsandasdirected

bytheCommittee.

Additionally,theHeadofInternalAudit

andRiskcontinuestochairtheCompany’s

OperationalRiskCommittee,whichhas

day-to-dayresponsibilityforoverseeingthe

GroupRiskRegisterandthedevelopment

andimplementationoftheGroup’sapproach

torisk.

Therangeofinternalauditsledbythe

InternalAuditfunctionduringtheyear

weresetoutintheFY24InternalAuditplan

andagreedwiththeCommittee.Where

additionalexpertiseorresourcewas

requiredinrespectofcertainreviewswithin

thisplan,theInternalAuditfunctionwas

closelysupportedbyco-sourcepartners.

TheCommitteereceivedupdatesfrom

theInternalAuditfunctionateachofits

meetingsduringtheyear.Itreviewed:

• Regularupdatesonthestatusofthe

FY24InternalAuditplan.

• Detailedreportsontheprocess,findings

andlearningsofspecificinternalaudits.

• TheGroupRiskRegisterandarisk

managementupdate.

• Thenature,scopingandresourcing

ofplannedfutureaudits.

• Theoutcomesofinternalauditand

riskworkwiththeSupplyChainteam,

includingcontrolsoverinventory.

• Progresswiththemonitoringofongoing

improvementstoITcontrols.

Additionally,theInternalAuditfunctionworked

closelyduringtheyearwithmanagementand

theCommitteeChairontheInternalAudit

planforFY25.Theapproachtoshapingthis

planwasunchangedfrompreviousyears;

specifically,itwasformulatedwithreference

toDr.Martens’strategicplansandobjectives

andinconsiderationoftopicsofparticular

importanceorrelevance,theprincipalrisks

facingthebusinessandthewidereconomic

andregulatoryclimate.

DuringFY25,reviewsareplannedcovering

assuranceoverkeyrisksandcontrols,

programmeandprojectassurance,andrisk

managementactivities.

INTERNAL AUDIT EFFECTIVENESS

TheCommittee’sreviewoftheInternal

AuditfunctionduringFY24concludedthatit

remainedeffective,possessedagoodlevel

ofexperienceandknowledgeandhad

establishedstrongworkingrelationships

withseniormanagementandtheexternal

auditor.ItalsofoundthatInternalAudithad

madegoodprogressindrivingimproved

focusamongotherbusinessfunctionson

theirkeyrisksandthatopportunitiesto

continuetostrengthenitsconnectionswith

thewiderorganisationwerebeingactioned.

InadditiontoattendingCommittee

meetings,theHeadofInternalAuditand

RiskmeetsregularlywiththeChairofthe

Committee,withoutthepresenceof

management,andalsomeetswithother

membersoftheCommitteeandwiththe

externalauditpartner,asnecessaryand

appropriate.Additionally,allmembersofthe

Committeeareentitledtorequestameeting

withtheHeadofInternalAuditandRisk

todiscussrisk,controlandauditmatters.

Overall,theCommitteeissatisfied

thattheInternalAuditfunction

continuestooperateeffectivelyand

demonstratestheappropriatedegree

ofquality,experienceandexpertise

forthebusiness.

CONFIRMATION

The role of the Committee relating to

internal control and risk management

is set out in the table below:

PLC Board

• Provides oversight of and is

ultimately accountable for risk.

• Assesses the principal and

emerging risks facing the Group.

• Monitors the Group’s overall

risk management and internal

control systems.

• Annually reviews the effectiveness

of the systems of risk management

and internal control.

Audit and Risk

Committee

• Reviews the effectiveness of the

Group’s internal financial controls.

• Receives reports from management

on the effectiveness of the Group’s

systems and the conclusions of

any testing undertaken.

• Reviews and approves

statements in the Annual Report

in relation to internal control and

management of risk.

Leadership

SupportedbyInternalAudit,is

responsiblefor:

• Theidentification,assessment,

managementandmonitoring

ofriskonaday-to-daybasis.

• Developing,operatingandmonitoring

systemsofinternalcontrol.

• ProvidingassurancetotheBoard,

throughtheAuditandRisk

Committee,thatithasdoneso.

RISK

 MOREINFORMATIONABOUT

OUR APPROACH TO RISK

MANAGEMENT

ISAVAILABLEONP38

142 DR. MARTENS PLC ANNUAL REPORT 2024

AUDIT AND RISK COMMITTEE REPORT CONTINUED

ASSESSMENT OF THE GROUP’S

SYSTEM OF INTERNAL CONTROL AND

RISK MANAGEMENT FRAMEWORK

TheGroup’sprocessesforassessingand

managingsignificantbusinessrisks,including

itsprincipalrisksanduncertainties,isa

keyareaoffocusfortheCommittee.

ActivityisdrivenprimarilybytheCompany’s

assessmentofitsprincipalrisksand

uncertainties,assetoutonpages40to43.

TheCommitteereviewedtheGroup’srisk

managementandinternalcontrolsystems

throughreportsandupdatespresentedtoitby

managementatitsmeetingsduringtheyear.

TheCompanyhasestablishedaninternal

controlenvironmenttoprotectthebusiness

fromthematerialriskswhichhavebeen

identified.Managementisresponsiblefor

establishingandmaintainingadequate

internalcontrolsoverfinancialreportingandfor

ensuringtheeffectivenessofthesecontrols.

TheCommitteereceivesupdatesoninternal

controlmattersthroughreportsfromthe

InternalAuditfunction,ensuringthatissues

areidentifiedinatimelyfashion,thatremedial

actionistakenintheeventthatcontrolfailures

orweaknessesareidentifiedandthatprogress

canbemonitoredbytheCommittee.

TheCommitteeChairupdatestheBoard

verballyateachsubsequentBoardmeeting

onthekeyissuesdiscussedbythe

Committeeortomakeanyrecommendations

onmattersthatfallwithintheCommittee’s

remit.AllBoardmembersaregivenaccess

toCommitteepapers,reportsandsupporting

materials.Boardmemberswhoarenotalso

membersoftheCommitteeareinvitedto

attendCommitteemeetingsasappropriate

tooffertheirvaluableinputandexpertise.As

such,allBoardmembersarekeptuptodate

ontheCommittee’sdiscussionsrelatingto

riskmanagementandsystemsofinternal

control,aswellasonitsactivitiesgenerally.

TheCommitteeconfirmsthatitidentifiedno

significantfailingsorweaknessesthatmay

significantlyimpactthefinancialstatements.

FurthertotheCommittee’sreview,the

BoardissatisfiedthattheCompany’s

systemsofinternalcontrolandrisk

managementcontinuetobeeffective,in

accordancewiththerequirementsofthe

FRCGuidanceonRiskManagement,

InternalControlandRelatedFinancial

andBusinessReporting.

CONFIRMATION

ANTI-BRIBERY, FRAUD AND CORRUPTION

TheBoardhasdelegatedresponsibilityfor

reviewingtheGroup’ssystemsandcontrols

forpreventingbriberyandcorruptiontothe

Committee,withsupportprovidedbythe

InternalAuditandCompliancefunctions.

Dr.MartenshasinplaceaclearAnti-Bribery

andCorruptionPolicywhichformspartof

itsglobalcodeofconduct,the‘DOCtrine’.

Employeesareissuedwithacopyofthe

DOCtrineintheirlocallanguageatthetime

theyjointhebusinessandmaterialsrelating

totheDOCtrineareavailableforgeneral

accessviatheCompany’sinternalintranet,

‘Backstage’.TheCompany’scompliance

trainingprogrammealignswiththe

DOCtrineandtheglobalpoliciesthatit

refersto,ensuringourpeopleunderstand

theirresponsibilitiesinmattersincluding

preventingbriberyandcorruption.

TheCommitteemaintainsoversightof

thecontrolstheCompanyhasinplace

tomitigatefraudrisk.Itreceivedareport

fromtheInternalAuditfunctionduring

theyear,whichconfirmedthatnofailings

orsignificantweaknessesinthecontrol

environmenthadbeenidentified.

TheCommitteeissatisfiedthatthe

Company’sprocesses,systemsand

controlsrelatingtoanti-bribery,fraud

andcorruptionremainappropriate

andaresufficientlyembeddedand

wellunderstoodacrossthebusiness.

CONFIRMATION

WHISTLEBLOWING

TheCommitteeisresponsibleforensuring

theCompanyhasinplaceeffectivepolicies

andprocedurestoensurethatissuescanbe

raised,investigatedandactedupon.These

proceduresaresetoutintheCompany’s

‘SpeakUp’Policy,whichdetailstheprocess

bywhichemployeesareabletosafely

raiseconcernsaboutsuspectedillegalor

unethicalbusinesspractices.Aconfidential

incidentreportingfacilityisavailable,

providedbyanindependentspecialistfirm,

fortheanonymousreportingofconcerns.

Thepolicysitsalongside,andisreferenced

in,theDOCtrineandissupportedbyclear,

concisemessagingwithinouremployee

trainingandinternalcommunicationsto

raiseawarenessofitsexistence.

TheCommitteereceivesupdateson

whistleblowingactivity,includingincidents,

investigationsandoutcomes,withinitsregular

reportsfromtheCompliancefunction.

TheCommitteecontinuestobelievethe

Company’sprocessesandprocedures

inrelationtowhistleblowingare

effective,appropriateandunderstood.

CONFIRMATION

GOVERNANCE

143DR. MARTENS PLC ANNUAL REPORT 2024

Directors’ Report

TheDirectors’Reportfortheyearended31March2024comprises

pages85to148and219totheIBCofthisAnnualReport,including

anysectionsincorporatedbyreference.TheDirectors’Reportfulfils

therequirementsoftheCorporateGovernanceStatementforthe

purposesofDTR7.2.3R.Furtherinformationisavailableonline,in

theGovernancesectionofwww.drmartensplc.com.

TheStrategicReportcanbefoundonpages1to84.Inaccordance

withSection414C(11)oftheCompaniesAct2006(the‘Act’),theBoard

hasincludedcertaindisclosuresintheStrategicReportsetoutbelow:

• Informationrelatingtofuturebusinessdevelopmentscanbe

foundthroughouttheStrategicReport.

• InformationrelatingtotheGroup’sprincipalrisksandrisk

managementcanbefoundonpages38to43.

• Thegoingconcernandlong-termviabilitystatementscan

befoundonpages44and45.

• DetailsofbranchesoperatedbytheCompanyaresetout

onpages5and28and31.

• TheCompany’sglobalgreenhousegasemissions,energy

consumptionandefficiencyduringFY24canbefoundon

page53oftheSustainabilityReport,whichislocatedwithin

theStrategicReport.

• Informationrelatingtoresearchanddevelopmentcanbefound

onpages16to17and24to29oftheStrategicReportand56

to62oftheSustainabilityReport.

• InformationonhowtheDirectorshavehadregardforthe

Company’sstakeholders,andtheeffectofthatregard,canbe

foundonpages18to21oftheStrategicReportandpages101

to105oftheGovernanceReport.

• DisclosuresbasedontheprinciplesofTaskForceonClimate-related

FinancialDisclosures(TCFD)aredetailedonpages75to83.

Forinformationonourapproachtosocial,environmentaland

ethicalmatters,pleaserefertotheSustainabilityReport,which

canbefoundwithintheStrategicReportonpages46to74.

Otherinformationwhichlegislationrequirestobedisclosedinthe

Directors’Reportissetoutonthefollowingpages.

TheStrategicReportandtheDirectors’Reporttogetherformthe

ManagementReportforthepurposesoftheDisclosureGuidance

andTransparencyRules(DTR)4.1.8R.

Informationrelatingtofinancialinstrumentscanbefoundonpages

191to194andisincorporatedbyreference.

BoththeStrategicReportandtheDirectors’Reporthavebeen

drawnupandpresentedinaccordancewithandinrelianceupon

applicableEnglishcompanylaw,andtheliabilitiesoftheDirectors

inconnectionwiththosereportsshallbesubjecttothelimitations

andrestrictionsprovidedbysuchlaw.

Relating to the Board

THE BOARD OF DIRECTORS

TheDirectorswhoheldofficeduringtheyearended31March2024

andupuntilthedateofthisReportaresetoutbelow.Fullbiographical

detailsofeachDirectorareprovidedonpages92to94.

• GilesWilsonwasappointedon13May2024.

• AndrewHarrisonwasappointedon1May2023.

• IjeNwokorieresignedasDirectoron1February2024.

• JonMortimoreresignedasDirectoron26March2024.

TheappointmentandreplacementofDirectorsaregovernedbythe

Company’sArticlesofAssociation(the‘Articles’),theUKCorporate

GovernanceCode2024(the‘Code’),theActandrelatedlegislation.

TheCompanymay,byordinaryresolution,declaredividendsnot

exceedingtheamountrecommendedbytheBoard.Subjecttothe

Act,theBoardmaypayinterimdividendsandalsoanyfixedrate

dividend,wheneverthefinancialpositionoftheCompany,inthe

opinionoftheBoard,justifiesitspayment.

TheDirectorsmayfromtimetotimeappointoneormoreDirectors.

TheBoardmayappointanypersontobeaDirector(solongasthe

totalnumberofDirectorsdoesnotexceedthelimitprescribedinthe

Articles).UndertheArticles,anysuchDirectorshallholdofficeonly

untilthenextAnnualGeneralMeeting(AGM)wheretheywillstand

forannualelection.

ARTICLES OF ASSOCIATION AND POWERS OF DIRECTORS

TheArticlessetouttherulesrelatingtothepowersoftheCompany’s

Directorsandtheirappointmentandreplacement.TheArticlesmay

onlybeamendedbyspecialresolutionatageneralmeetingofthe

shareholders.SubjecttotheArticles,theActandanydirectionsgiven

byspecialresolution,thebusinessoftheCompanywillbemanaged

bytheBoardwhichmayexerciseallthepowersoftheCompany.

DIRECTORS’ INDEMNITIES AND INSURANCE

TheCompanymaintainedDirectors’andOfficers’liabilityinsurance

coverthroughoutthereportingperiod,providingappropriatecover

forlegalactionbroughtagainsttheDirectors.TheDirectorsmayalso

obtainindependentlegaladviceattheCompany’sexpense,as

necessary,intheircapacityasDirectors.TheCompanyhasentered

intodeedsofindemnitywitheachDirector,whichprovidethatthe

CompanyshallindemnifytheDirectorstothefullestextentpermitted

bylawandtheArticles,inrespectofalllossesarisingoutof,or

inconnectionwith,theexecutionoftheirpowers,dutiesand

responsibilitiesasDirectorsoftheCompanyoranyofitssubsidiaries.

COMPENSATION FOR LOSS OF OFFICE

TherearenoagreementsbetweentheCompanyanditsDirectors

oremployeesprovidingforcompensationforlossofoffice

oremploymentthatoccursasaresultofatakeoverbid.

DIRECTORS’ SHARE INTERESTS

DetailsofDirectors’beneficialandnon-beneficialinterestsinthe

sharesoftheCompanyareshownonpage129.Furtherinformation

regardingemployeeshareschemesisprovidedinnote26tothe

FinancialStatementsonpage196to199.

DIRECTORS’ CONFLICTS OF INTEREST

TheCompanyhasputinplaceproceduresformanagingconflicts

ofinterest.Onbecomingawareoftheexistenceofanactualor

potentialconflictofinterestimpactingthemselvesoranyperson

closelyassociatedwiththem,theDirectorsarerequiredtoprovide

detailstotheBoardforconsiderationand,ifappropriate,its

authorisation.Ifaconflictisdeemedtoexist,therelevantDirector

willexcusethemselvesfromconsiderationfordiscussionsrelating

tothatconflict.Directorshaveacontinuingdutytoupdateany

changestotheseconflicts.

144 DR. MARTENS PLC ANNUAL REPORT 2024

DIRECTORS’ REPORT

RELATED PARTY TRANSACTIONS

Internalcontrolsareinplacetoensurethatanyrelatedparty

transactionsinvolvingDirectors,ortheircloselyassociated

persons,areconductedonanarm’slengthbasisandare

properlyrecordedanddisclosedwhereappropriate.

DIRECTORS’ SERVICE CONTRACTS AND LETTERS OF

APPOINTMENT

DetailsoftheExecutiveDirectors’serviceagreementsand

Non-ExecutiveDirectors’lettersofappointmentareavailable

intheRemunerationReportonpage125.

Relating to the Company’s share capital

SHARE CAPITAL

DetailsoftheCompany’sissuedsharecapitalaresetoutinnote23

tothefinancialstatementsonpage195.Asat31March2024,this

comprisedasingleclassofordinarysharecarryingtherighttoone

voteatgeneralmeetingsoftheCompany.Holdersofordinaryshares

areentitledtoattendandspeakatgeneralmeetingsoftheCompany,

toappointoneormoreproxiesand,iftheyarecorporations,

corporaterepresentativestoattendgeneralmeetingsandto

exercisevotingrights.TheArticlesprovideadeadlineforsubmission

ofproxyformsofnotearlierthan48hoursbeforethetimeappointed

fortheholdingofthemeetingoradjournedmeeting.However,when

calculatingthe48-hourperiod,theDirectorscandecidenottotake

accountofanypartofadaythatisnotaworkingday.

Holdersofordinarysharesmayreceiveadividend,ifdeclared,and

mayshareintheassetsoftheCompanyonitsliquidation.Holders

ofordinarysharesareentitledtoreceivetheCompany’sAnnual

ReportandAccounts.

Subjecttomeetingcertainthresholds,holdersofordinaryshares

mayrequisitionageneralmeetingoftheCompanyortheproposal

ofresolutionsatAGMs.

VARIATION OF RIGHTS

Subjecttoapplicablestatutes,rightsattachedtoanyclassofshare

(unlessotherwiseprovidedbythetermsofallotmentoftheshares

ofthatclass)maybevariedorabrogatedwiththewrittenconsentof

theholdersofatleastthree-quartersinnominalvalueoftheissued

sharesofthatclass(excludinganysharesofthatclassheldin

treasury),orbyaspecialresolutionpassedataseparategeneral

meetingoftheshareholders,butnototherwise.

RIGHTS AND OBLIGATIONS ATTACHING TO SHARES

SubjecttotheprovisionsoftheCompaniesAct2006,andwithout

prejudicetoanyrightsattachedtoanyexistingsharesorclassof

shares,anysharemaybeissuedwithsuchrightsorrestrictionsas

theCompanymaybyordinaryresolutiondetermineor,subjectto

andindefaultofsuchdetermination,astheBoardshalldetermine.

RESTRICTIONS ON TRANSFER OF SECURITIES

InconnectionwiththeIPO,IngreLuxS.àr.l.andcertainpre-IPO

shareholderswhoaremembersoftheGriggsfamilyenteredintoan

OrderlyMarketingAgreement(towhichtheCompanyisnotaparty)

regulatingthedisposalofsharesbyanyofthem,suchthatany

disposalsofanyofthemfollowingtheIPOmaybecoordinatedand

conductedinanorderlymanner.Thisagreementstipulatesthat,after

theexpirationoftherestrictionsreferredtoabove,followingadisposalof

sharesbyIngreLuxS.àr.l.,thepartiesagreethattheywillbeboundbya

furtherlock-uponidenticaltermstotheequivalentlock-uptermsinthe

UnderwritingAgreement(inthecaseofIngreLuxS.àr.l.)andintheSSE

Deed(inthecaseoftherelevantpre-IPOshareholders)foraperiod

of90calendardaysfromthedateonwhichthedisposalcompletes.

Inadditiontothespecificrestrictionssetoutinthissection,there

arethefollowingongoinggeneralrestrictionsonthetransferof

sharesintheCompany:

• certainrestrictionsapplywhichmayfromtimetotimebeimposed

bylegislationandregulations(forexample,legislationrelatingto

insiderdealing);

• pursuanttotheCompany’ssecuritiesdealingcode,theDirectors

andmembersoftheleadershipteamrequirepermissiontodeal

intheCompany’sshares;

• restrictionsapplywhereamember,oranyotherperson

appearingtobeinterestedinsharesheldbysuchmember,with

aninterestrepresentingatleast0.25%innominalvalueofthe

issuedsharesoftheirclass,hasbeenservedwithadisclosure

noticeunderSection793oftheActandhasfailedtoprovidethe

Companywithinformationconcerninginterestsinthoseshares;

• thesubscriberordinarysharesmaynotbetransferredwithout

thepriorwrittenconsentoftheDirectors;

• theBoardmay,initsabsolutediscretion,refusetoregisterthe

transferofanyshareswhicharenotfullypaid,providedthat

therefusaldoesnotpreventdealingsinsharesintheCompany

fromtakingplaceonanopenandproperbasis;

• theBoardmayalsorefusetoregisteratransferinfavourofmore

thanfourtransferees;and

• theBoardmayalsorefusetoregisterthetransferofan

uncertificatedshareinthecircumstancessetoutinthe

uncertificatedsecuritiesrules(asdefinedintheArticles).

REPURCHASE OF OWN SHARES

On14July2023,underauthoritiesgrantedbyshareholdersat

theAGMheldon13July2023,theCompanyannouncedthe

commencementofa£50msharebuybackprogramme.Atotal

of39,869,135ordinaryshareswererepurchasedandcancelled

duringtheprogramme,whichconcludedon19December2023.

Thetotalconsiderationpaidforthesharespurchasedunderthe

programme,excludingtransactioncosts,was£49,999,999.26.

MAJOR SHAREHOLDERS

Asat31March2024,theCompanyhadreceivednotificationofthe

followinginterestsinvotingrightspursuanttoChapter5oftheDTR:

Date notified % of voting rights

IngreLuxS.àr.l.

1December2023 38.102%

GICPrivateLimited 31July2023 5.00%

ArtemisInvestment

ManagementLLP 11July2023 5.08%

BlackRock,Inc 24June2021 <5%

1. PercentagesareshownasapercentageoftheCompany’stotalvotingrightsas

atthedatetheCompanywasnotifiedofthechangeinholding.

2. IngreLuxS.àr.l.’sshareholdingpassedthe38%notifiablethresholdasaresult

ofthedecreasednumberoftotalordinarysharesintheCompanyduetotheshare

buybackprogrammecommencedon14July2023.

3. Disclosuresmadepriortothe2023sharebuybackprogramme.

Thisinformationwascorrectatthedateonwhichitwasnotified

totheCompany.However,thedateofnotificationmaynothave

beenduringtheyearunderreviewandfurthernotificationsarenot

requiredtobemadeuntilthenextnotifiablethresholdiscrossed.

Nochangestothepositionssetoutaboveandnonewpositions

weredisclosedtotheCompanybetween31March2024andthe

publicationofthisAnnualReport.

GOVERNANCE

145DR. MARTENS PLC ANNUAL REPORT 2024

Relating to the Company

PROFIT AND DIVIDENDS

Theprofitforthefinancialyear,aftertaxation,amountsto£69.2m.

Aninterimdividendof1.56pperordinarysharewasannounced

on30November2023andpaidinFebruary2024inrelationto

theperiodunderreviewandtheDirectorsintendtoproposethe

Companypayafinaldividendfortheyearending31March2024

of0.99pperordinaryshare.

Listing Rule Detail Page reference(s)

9.8.4R(1-2),

(4),(7-13)

Notapplicable N/A

9.8.4R(5-6) Waiversoffuture

emoluments

RemunerationReportpages

117,119,127and129

9.8.4R(14)

(A-D)

Agreements

withcontrolling

shareholder

‘Relationshipagreementwith

controllingshareholder’,page

147,and‘Additionalstatement

ofcompliancewithUKListing

Rule9.8.4(14)’,below.

ADDITIONAL STATEMENT OF COMPLIANCE WITH UK LISTING

RULE 9.8.4 (14)

SincetheCompany’sadmissiontolisting,ithascompliedwith

theindependenceprovisionscontainedinUKListingRule

9.2.2ADR(1).SofarastheCompanyisaware,IngreLuxS.àr.l.

anditsassociateshavealsocompliedwiththeseprovisions.

SUBSIDIARIES AND PRINCIPAL ACTIVITIES

TheCompanyistheholdingcompanyoftheDr.MartensGroupof

companies(the‘Group’),theprincipalactivitiesofwhicharedescribed

inthisAnnualReport.TheGroup’ssubsidiariesandtheirlocations

aresetoutinnote13onpage215ofthefinancialstatements.

EMPLOYMENT POLICIES

TheCompanyhasinplaceanumberofpoliciescoveringimportant

issuesincludingdiversity,equityandinclusion,equalopportunities

andwellbeing.Wearecommittedtocreatinganenvironment

whereourpeoplecanallbeproudtoworkand,todothis,weare

anequalopportunityemployer.Allqualifiedapplicantswillreceive

considerationforemploymentwithoutregardtorace,colour,

religion,gender,genderidentityorexpression,sexualorientation,

nationalorigin,genetics,disabilityorageandwetakeallreasonable

stepstoensureequalityofopportunityinrecruitment,training,

developmentandconditionsofwork.Personswithdisabilitiesand/

orhealthconditionsaregivenfullandfairconsiderationforavailable

roles,havingregardfortheirparticularaptitudesandabilities,and

wearecommittedtoprovidingreasonableaccommodationsfor

qualifiedindividualswithdisabilitiesthroughoutourjobapplication

process.Employeeswhobecomedisabledduringtheircareer

atDr.Martenswillberetainedinemploymentwhereverpossible

andtheCompanywillsupportthemintheirrehabilitationinthe

workplaceandprovideanytrainingorretrainingwhereneeded.

EMPLOYEE INVOLVEMENT

Clearandopencommunicationwithourpeopleisfundamentally

importanttoourcultureandtosecuringourlong-termsuccess.

Weensureourpeopleacrossalltheregionsinwhichweoperate

globallyarekeptwellinformedofourperformanceandstrategy

andanysignificanteventsordevelopmentsimpactingthe

business.Detailedinformationabouthowweinvolveourpeople

atDr.MartenscanbefoundintheSustainabilityReport,the

EmployeeengagementsectionoftheGovernanceReport(which

detailstheworkofRobynPerrissasourEmployeeRepresentative

Non-ExecutiveDirector)andthewiderStrategicReport,specifically

onpages18,19,21and63to72.

POLITICAL DONATIONS

TheCompanydidnotmakeanypoliticaldonationsorincur

anypoliticalexpenditureduringtheyearended31March2024.

EXTERNAL AUDITOR

Resolutionsproposingtore-appointPricewaterhouseCoopersLLP

asauditoroftheCompanyandtoauthorisetheAuditandRisk

Committeetodetermineitsremunerationwillbeproposedfor

shareholderapprovalattheupcomingAGMinJuly2024.

AGREEMENTS WITH CONTROLLING SHAREHOLDER

SetoutintheDirectors’Reportinthesectionsentitled‘Relationship

agreementwithcontrollingshareholder’onpage147,and‘Additional

statementofcompliancewithUKListingRule9.8.4(14)’,left.

CHANGE OF CONTROL

DetailsofthesignificantagreementstowhichtheCompanyis

partythattakeeffect,alterorterminateuponachangeofcontrol

oftheCompanyfollowingatakeoverbidaresetoutbelow:

Share plans:TheCompany’sshareplanscontainspecific

provisionsrelatingtochangeofcontrol.Outstandingawardsand

optionswillnormallyautomaticallyvestandbecomeexercisable

orpayableonorfollowingachangeofcontrolarisingasaresultof

ageneraloffertoacquirethewholeoftheCompany’sissuedshare

capitaloracourtsanctionedcompromiseorarrangementunder

Section899oftheAct,subjecttotherelevantperformance

conditionsbeingmetatthattime.

Available facilities:TheSeniorFacilitiesAgreementdated

27January2021betweentheGroupandvariousbanks,pursuant

towhichtheGrouphasaccessto:(i)a€337.5mtermloanfacility;

and(ii)a£200mmulti-currencyrevolvingcreditfacility,containing

provisionsthat,intheeventoftheoccurrenceofachangeof

controlevent,thebanksshallhave15businessdaystoexercise

anindividualright:(i)tocancelallundrawncommitmentsonfive

businessdays’notice;and(ii)on60days’noticetorequirethat

alloutstandingparticipationsinutilisationsarerepaidwithaccrued

interestandanyotherrelevantamountsaccrued.

Relationship agreement:Detailsoftherelationshipagreement

withIngreLuxS.àr.l.aresetoutintherelevantsectionofthis

Directors’Reportonthenextpage.Therelationshipagreement

ceasestoapplyiftheCompany’ssharesceasetobelistedon

thepremiumlistingsegmentoftheOfficialListandtradedonthe

LondonStockExchange’smainmarketforlistedsecurities,orif

theholdingofIngreLuxS.àr.l.(togetherwithanyofitsassociates)

ceasestocontrolortobeentitledtocontroltheexerciseof,in

aggregate,10%ormoreofthevotesabletobecastonallor

substantiallyallmattersatgeneralmeetingsoftheCompany.

MODERN SLAVERY STATEMENT

TheCompany’sModernSlaveryStatementisreviewedand

approvedbytheBoardannuallyandpublishedonourcorporate

website,inlinewithSection54(1)oftheModernSlaveryAct2015.

ThestatementcoverstheactivitiesoftheCompanyandits

subsidiariesanddetailspolicies,processesandactionswehave

takentoensurethatslaveryandhumantraffickingarenottaking

placeinoursupplychainsoranypartofourbusiness.

Moreinformationonourstatementcanbefoundonourwebsite.

146 DR. MARTENS PLC ANNUAL REPORT 2024

DIRECTORS’ REPORT CONTINUED

RELATIONSHIP AGREEMENT WITH CONTROLLING

SHAREHOLDER

TheCompany’slargestand,forthepurposesoftheListingRules,

controllingshareholderisIngreLuxS.àr.l.,whichowns38.46%of

theissuedsharecapitalofDr.Martensplcasatthedateofthis

Report.IngreLuxS.àr.l.iswhollyownedbyfundsadvisedbyPermira

AdvisersLLP,aglobalinvestmentfirm.InaccordancewiththeUK

ListingRules,theCompanyandIngreLuxS.àr.l.haveenteredintoa

relationshipagreement(the‘RelationshipAgreement’)toensurethat:

1. theGroupcancarryonanindependentbusinessasitsmainactivity;

2. anytransactionsandarrangementsbetweentheGroupand

IngreLuxS.àr.l.(and/oranyofitsassociates)areatarm’slength

andconductedonnormalcommercialterms;

3. neitherIngreLuxS.àr.l.noranyofitsassociateswilltakeany

actionthatwouldhavetheeffectofpreventingtheCompany

fromcomplyingwithitsobligationsundertheListingRules;

4. neitherIngreLuxS.àr.l.noranyofitsassociateswillpropose

orprocuretheproposalofashareholderresolutionwhichis

intendedorappearstobeintendedtocircumventtheproper

applicationoftheListingRules;and

5.atalltimesamajorityoftheDirectorsoftheCompanyshall

beindependentofIngreLuxS.àr.l.

PursuanttotheRelationshipAgreement,IngreLuxS.àr.l.is

alsoentitledtoappointoneNon-ExecutiveDirectortotheBoard

andnominatethatindividualtobeamemberoftheCompany’s

NominationCommitteeforsolongasit(togetherwithanyof

itsassociates)controlsorisentitledtocontroltheexerciseof

inaggregate10%ormoreofthevotesabletobecastonallor

substantiallyallmattersatgeneralmeetingsoftheCompany.

IngreLuxS.àr.l.’sfirstappointedrepresentativeisTaraAlhadeff,

whosebiographycanbefoundonpage94),anditwillconsultin

advancewiththeChairoftheNominationCommitteeregarding

theidentityofanypersonproposedtobenominatedasa

Non-ExecutiveDirectorinthefuture.

PursuanttotheRelationshipAgreement,IngreLuxS.àr.l.has

certaininformationrightsforthepurposesofitsaccounting,tax

orotherregulatoryrequirements.Inaddition,theCompanymay

requestthatPermiraAdvisersLLPprovidesitwithadvisory

services.IngreLuxS.àr.l.hasundertakentokeepinformation

itreceivesontheGroupconfidentialandinaccordancewith

applicablelaw.

TheRelationshipAgreementalsoprovidesfortheCompanyto

provide,subjecttocertainlimitationsandexceptions,reasonable

cooperationandassistancetoIngreLuxS.àr.l.intheeventofa

saleofsharesbyIngreLuxS.àr.l.,andthatIngreLuxS.àr.l.will

ensurethatanysuchsecondarysalesofsharesintheCompany

areconductedinanorderlymanner.

TheDirectorsbelievethatthetermsoftheRelationshipAgreement

enabletheGrouptocarryonitsbusinessindependentlyofIngreLux

S.àr.l.TheRelationshipAgreementwillcontinueforsolongas:

1. theCompany’ssharesarelistedonthepremiumlistingsegment

oftheOfficialListandtradedontheLondonStockExchange’s

MainMarketforlistedsecurities;and

2. IngreLuxS.àr.l.(togetherwithanyofitsassociates)controlsoris

entitledtocontroltheexerciseofinaggregate10%ormoreofthe

votesabletobecastonallorsubstantiallyallmattersatgeneral

meetingsoftheCompany.

WhileIngreLuxS.àr.l.,onitsownortogetherwithanypersonwith

whomitisactinginconcert,holds30%ormoreofthevotesable

tobecastonallorsubstantiallyallmattersatgeneralmeetings

oftheCompany,itisconsidereda‘controllingshareholder’forthe

purposesoftheListingRules.WhileIngreLuxS.àr.l.remainsa

controllingshareholder,certainresolutions,suchasresolutions

relatingtotheelectionofIndependentDirectorsorthecancellation

oftheCompany’slisting,will,inordertobepassed,needtobe

approvedbyboth:

1. amajorityofshareholdersvotingontheresolution;and

2. amajorityofshareholdersvotingontheresolutionexcluding

IngreLuxS.àr.l.

ANNUAL GENERAL MEETING

TheCompany’sAGMwillbeheldatHolidayInn,30Jamestown

Road,CamdenNW17BY,onThursday11July2024at9.30am.

TheNoticeofMeeting,togetherwithexplanatorynotesand

guidanceonvotingandarrangements,willincludedetailsof

thebusinesstobeputtoshareholdersattheAGM.

GOVERNANCE

147DR. MARTENS PLC ANNUAL REPORT 2024

Statement of Directors’ responsibilities in respect

of the financial statements

TheDirectorsareresponsibleforpreparingtheAnnualReport

andthefinancialstatementsinaccordancewithapplicablelaw

andregulation.

CompanylawrequirestheDirectorstopreparefinancialstatements

foreachfinancialyear.UnderthatlawtheDirectorshaveprepared

theGroupfinancialstatementsinaccordancewithUK-adopted

internationalaccountingstandardsandtheCompanyfinancial

statementsinaccordancewithUnitedKingdomGenerallyAccepted

AccountingPractice(UnitedKingdomAccountingStandards,

comprisingFRS101‘ReducedDisclosureFramework’,and

applicablelaw).

Undercompanylaw,Directorsmustnotapprovethefinancial

statementsunlesstheyaresatisfiedthattheygiveatrueandfair

viewofthestateofaffairsoftheGroupandCompanyandofthe

profitorlossoftheGroupforthatperiod.Inpreparingthefinancial

statements,theDirectorsarerequiredto:

• selectsuitableaccountingpoliciesandthenapplythemconsistently;

• statewhetherapplicableUK-adoptedinternationalaccounting

standardshavebeenfollowedfortheGroupfinancialstatements

andUnitedKingdomAccountingStandards,comprisingFRS

101havebeenfollowedforthecompanyfinancialstatements,

subjecttoanymaterialdeparturesdisclosedandexplainedin

thefinancialstatements;

• makejudgementsandaccountingestimatesthatarereasonable

andprudent;and

• preparethefinancialstatementsonthegoingconcernbasis

unlessitisinappropriatetopresumethattheGroupand

Companywillcontinueinbusiness.

TheDirectorsareresponsibleforsafeguardingtheassetsofthe

GroupandCompanyandhencefortakingreasonablestepsfor

thepreventionanddetectionoffraudandotherirregularities.

TheDirectorsarealsoresponsibleforkeepingadequateaccounting

recordsthataresufficienttoshowandexplaintheGroup’sand

Company’stransactionsanddisclosewithreasonableaccuracyat

anytimethefinancialpositionoftheGroupandCompanyandenable

themtoensurethatthefinancialstatementsandtheDirectors’

RemunerationReportcomplywiththeCompaniesAct2006.

TheDirectorsareresponsibleforthemaintenanceandintegrity

oftheCompany’swebsite.LegislationintheUnitedKingdom

governingthepreparationanddisseminationoffinancial

statementsmaydifferfromlegislationinotherjurisdictions.

Directors’ confirmations

TheDirectorsconsiderthattheAnnualReportandAccounts,taken

asawhole,isfair,balancedandunderstandableandprovidesthe

informationnecessaryforshareholderstoassesstheGroup’sand

Company’spositionandperformance,businessmodelandstrategy.

EachoftheDirectors,whosenamesandfunctionsarelistedinthe

BoardofDirectorssection,confirmthat,tothebestoftheirknowledge:

• theGroupfinancialstatements,whichhavebeenpreparedin

accordancewithUK-adoptedinternationalaccountingstandards,

giveatrueandfairviewoftheassets,liabilities,financialposition

andprofitoftheGroup;

• theCompanyfinancialstatements,whichhavebeenprepared

inaccordancewithUnitedKingdomAccountingStandards,

comprisingFRS101,giveatrueandfairviewoftheassets,

liabilitiesandfinancialpositionoftheCompany;and

• theStrategicReportincludesafairreviewofthedevelopment

andperformanceofthebusinessandthepositionoftheGroup

andCompany,togetherwithadescriptionoftheprincipalrisks

anduncertaintiesthatitfaces.

InthecaseofeachDirectorinofficeatthedatetheDirectors’

Reportisapproved:

• sofarastheDirectorisaware,thereisnorelevantaudit

informationofwhichtheGroup’sandCompany’sauditors

areunaware;and

• theyhavetakenallthestepsthattheyoughttohavetaken

asaDirectorinordertomakethemselvesawareofany

relevantauditinformationandtoestablishthattheGroup’s

andCompany’sauditorsareawareofthatinformation.

ThisresponsibilitystatementwasapprovedbytheBoard

ofDirectorson29May2024.

ByorderoftheBoard

EMILY REICHWALD

COMPANYSECRETARY

29May2024

Dr. Martens plc

Companynumber:12960219

148 DR. MARTENS PLC ANNUAL REPORT 2024

DIRECTORS’ REPORT CONTINUED

FINANCIAL

STATEMENTS

Independent Auditors’ Report 150

Consolidated Statement of Profit or Loss 160

Consolidated Statement

of Comprehensive Income 161

Consolidated Balance Sheet 162

Consolidated Statement

of Changes in Equity 163

Consolidated Statement of Cash Flows 164

Notes to the Consolidated

Financial Statements 165

In this section:

FINANCIAL STATEMENTS

149DR. MARTENS PLC ANNUAL REPORT 2024

REPORT ON THE AUDIT OF

THE FINANCIAL STATEMENTS

OPINION

Inouropinion:

• Dr.Martensplc’sGroupfinancialstatementsandParent

Companyfinancialstatements(the“financialstatements”)

giveatrueandfairviewofthestateoftheGroup’sandof

theParentCompany’saffairsasat31March2024andof

theGroup’sprofitandtheGroup’scashflowsfortheyear

thenended;

• theGroupfinancialstatementshavebeenproperly

preparedinaccordancewithUK-adoptedinternational

accountingstandardsasappliedinaccordancewiththe

provisionsoftheCompaniesAct2006;

• theParentCompanyfinancialstatementshavebeen

properlypreparedinaccordancewithUnitedKingdom

GenerallyAcceptedAccountingPractice(UnitedKingdom

AccountingStandards,includingFRS101“Reduced

DisclosureFramework”,andapplicablelaw);and

• thefinancialstatementshavebeenpreparedinaccordance

withtherequirementsoftheCompaniesAct2006.

OuropinionisconsistentwithourreportingtotheAuditand

RiskCommittee.

Basis for opinion

WeconductedourauditinaccordancewithInternational

StandardsonAuditing(UK)(“ISAs(UK)”)andapplicablelaw.Our

responsibilitiesunderISAs(UK)arefurtherdescribedintheAuditors’

responsibilitiesfortheauditofthefinancialstatementssectionof

ourreport.Webelievethattheauditevidencewehaveobtainedis

sufficientandappropriatetoprovideabasisforouropinion.

INDEPENDENCE AND APPOINTMENT

WeremainedindependentoftheGroupinaccordancewiththe

ethicalrequirementsthatarerelevanttoourauditofthefinancial

statementsintheUK,whichincludestheFRC’sEthicalStandard,as

applicabletolistedpublicinterestentities,andwehavefulfilledour

otherethicalresponsibilitiesinaccordancewiththeserequirements.

Tothebestofourknowledgeandbelief,wedeclarethatnon-audit

servicesprohibitedbytheFRC’sEthicalStandardwerenotprovided.

OtherthanthosedisclosedinNote5totheconsolidatedfinancial

statements,wehaveprovidednonon-auditservicestotheParent

Companyoritscontrolledundertakingsintheperiodunderaudit.

FollowingtherecommendationoftheAuditandRiskCommittee,

wewereappointedbythememberson14July2022toauditthe

financialstatementsfortheyearended31March2023and

subsequentfinancialperiods.Theperiodoftotaluninterrupted

engagementistwoyears,coveringtheyearsended31March2023

to31March2024.

Wehaveauditedthefinancialstatements,includedwithinthe

AnnualReport2024(the“AnnualReport”),whichcomprise:

• theConsolidatedandParentCompanyBalanceSheetsas

at31March2024;

• theConsolidatedStatementofProfitorLoss,

• theConsolidatedStatementofComprehensiveIncome,

• theConsolidatedandParentCompanyStatementsof

ChangesinEquity,

• theConsolidatedStatementofCashFlowsfortheyear

thenended;and

• theNotestothefinancialstatements,comprisingmaterial

accountingpolicyinformationandotherexplanatory

information.

TIMELINE OF ENGAGEMENT

14 July

2022

31 March

2023

31 March

2024

Appointed First

year-end

Current

year-end

Period of total uninterrupted

engagement (2 years)

150 DR. MARTENS PLC ANNUAL REPORT 2024

INDEPENDENT AUDITORS’ REPORT

TOTHEMEMBERSOFDR.MARTENSPLC

Our audit approach

OVERVIEW

AUDIT SCOPE

 Weperformedfullscopeauditsoffourcomponents;

 Inaddition,forafurtherfourcomponents,weperformedauditprocedures

onspecificaccountswithineachcomponentbasedoneitherthesizeorrisk

profileofthoseaccounts;

 SpecificauditproceduresinrelationtovariousGroupactivities,including

overtheconsolidation,leases,sharebasedpayments,taxation,pensions

andthecarryingvalueofbothgoodwillandassetsattributabletostores,

wereperformedbytheGroupteamcentrally;and

 WeperformedastatutoryauditoftheParentCompany.

full scope

component audits

components with specific

audit procedures

KEY AUDIT MATTERS

Valuationofinventory

provisions(Group)

YEAR ON YEAR:

Consistent

Carryingvalueofinvestmentin

subsidiary(ParentCompany)

YEAR ON YEAR:

Consistent

MATERIALITY

Overall Group materiality

basedon5%ofthethree-yearaverageofGroup

profitbeforetaxwithafurtherhaircutapplied.

£7.2M

Overall Parent Company materiality

basedon1%oftotalassets.

£14.1M

Performance materiality

Group

£5.4M £10.6M

ParentCompany

No longer a KAM

Existenceofinventory

attheLosAngeles(“LA”),

USwarehouse(Group)

FINANCIAL STATEMENTS

151DR. MARTENS PLC ANNUAL REPORT 2024

The scope of our audit

Aspartofdesigningouraudit,wedeterminedmaterialityandassessedtherisksofmaterialmisstatementinthefinancialstatements.

Key audit matters

Keyauditmattersarethosemattersthat,intheauditors’professionaljudgement,wereofmostsignificanceintheauditofthefinancial

statementsofthecurrentperiodandincludethemostsignificantassessedrisksofmaterialmisstatement(whetherornotduetofraud)

identifiedbytheauditors,includingthosewhichhadthegreatesteffecton:theoverallauditstrategy;theallocationofresourcesinthe

audit;anddirectingtheeffortsoftheengagementteam.Thesematters,andanycommentswemakeontheresultsofourprocedures

thereon,wereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwe

donotprovideaseparateopiniononthesematters.

ExistenceofinventoryattheLosAngeles(“LA”),USwarehouse,whichwasakeyauditmatterlastyear,isnolongerincludedbecauseof

thechangesmadebymanagementwithrespecttotheinventoryheldatthislocationanditssatellitewarehousesthroughoutthecurrent

financialyear,whichmeantlessauditeffortwasspentonthismatter.

Thisisnotacompletelistofallrisksidentifiedbyouraudit.

Valuation of inventory provisions (Group)

Background: Procedures performed:

Refer to the Audit and Risk Committee report, Note 13 Inventories

and Note 2.26 Significant judgements and estimates.

TheGroupsellsavarietyoffootwearandaccessoryproductsandis

subjecttochangingconsumerdemandsandfashiontrends,increasing

thelevelofjudgementinvolvedinestimatinginventoryprovisions.

Thesignificantmajorityofinventoryconsistsofthebusiness’score

footwearproductlines.Thesearepredominantlybootsandshoes

whichhavebeendesignedwithDr.Martens’brandingandhavebeen

soldformanyyears.TheGroup’sinventoryprovisionisprimarily

basedontheclassificationofinventoryproductlines,inventory

ageandtheriskthatcertainproductscannotbesoldabovecost.

Judgementisrequiredtoestimatefuturesalesforecastsandto

assesswhetheralternativesalesstrategies,includingdiscounting,

arerequiredtoclearexcessinventory.

• Weperformedauditproceduresoverthisareainfivelocations,

whichcovered93%ofthetotalGroupinventorybalanceand74%

oftheinventoryprovisionrecognisedof£2.6million.Thisbalance

includesallcategoriesofinventoryprovisions.

• Weobtainedanunderstandingoftheinventoryprovisioning

processineachoftheabovelocations,assessingtheconformity

toGrouppolicy.

• Werecomputedtheprovisioncalculationsbasedon

management’smethodologyandsubstantivelytestedtheinputs

tovalidatethecompletenessandaccuracyofthereportsusedto

quantifytheprovisions,includingtestinginventoryclassification

withintheprovisionworkings.

• Wechallengedandvalidatedthekeyassumptionsappliedby

managementtocalculatetheprovision,withparticularfocuson

thelevelofinventorysoldbelowcostduringFY24.

• Weperformedsensitivityanalysistoassessthesignificanceand

riskofchangesinassumptionsontheprovisionamountinthe

componentthatholdsthehighestvalueofinventoryprovision.

• Weperformedinquiriesacrossthebusinessandobserveda

sampleofinventorycountswithparticularfocusonverifyingthe

obsoleteinventoryandagedinventorywhichmayhaveindicated

thataprovisionmayberequired.

Observations

Wefoundthattheprovisionsrecordedwereconsistentwiththeevidenceobtained.

152 DR. MARTENS PLC ANNUAL REPORT 2024

INDEPENDENT AUDITORS’ REPORT

TOTHEMEMBERSOFDR.MARTENSPLCCONTINUED

89% 83% 91%

Carrying value of investment in subsidiary (Parent Company)

Background: Procedures performed:

Refer to Note 2 (Parent Company financial statements) for

accounting policies and Note 6 (Parent Company financial

statements) – Investments of the Parent Company financial

statements. Investments are investments in subsidiaries.

InaccordancewithIAS36,theParentCompany’sinvestments

balanceshouldbecarriedatnomorethanitsrecoverableamount,

beingthehigheroffairvaluelesscoststosellanditsvaluein

use.IAS36requiresanentitytodeterminewhetherthereare

indicationsthatanimpairmentlossmayhaveoccurredandifso,

makeaformalestimateoftherecoverableamount.

Thefallinsharepriceduringtheyearandthemacroeconomic

challengesexperiencedacrossanumberoftheeconomieswhere

theGroupoperateswereconsideredbymanagementtobean

impairmentindicatortothecarryingvalueoftheinvestmentand,

asaresult,animpairmentassessmentwasperformed.This

includedpreparingaValueinUse(VIU)modelreflectingtheBoard

reviewedbudgetforFY25andFY26,thefiveyearplanto31March

2029andthecashflowsintoperpetuityusinganestimated

terminalgrowthrate.

ThroughthisassessmentmanagementidentifiedthattheVIU

exceededthecarryingvalueoftheinvestment,andtherefore

concludedthatnoimpairmentwasrequired.

• Weverifiedthemathematicalaccuracyofthecalculationsused,

toestimatetheVIU.

• SupportedbyourPwCvaluationsexpertsweindependently

assessedmanagement’sdiscountrateforappropriatenessand

comparedtherevenueandEBITDAmultipleofmanagement’s

VIUmodeltosimilarcompanies.

• Werequestedmanagementprovideinternalandexternalmarket

evidencetosupportthekeyassumptionsintheVIUmodel.These

wereassessedagainsthistoricalresultsandmanagement’s

forecastingaccuracy,industryreportsandcostinflationmeasures.

• Wesensitisedmanagement’sassumptionsintheVIUmodel,

inparticulararoundtheforecastgrowthrate.

• TheGroup’sestimateofrecoverableamount,although

sensitivetochangesinassumptions,supportsthecarrying

valueoftheinvestment.

• WealsoevaluatedthedisclosuresinNote2–Accounting

policiesandNote6–InvestmentsoftheParentCompany

financialstatements,whichincludedsensitivities.

Observations

Weconsidermanagement’sconclusionthat,whilstindicatorsofimpairmentexisted,noimpairmentwasrequiredtobeappropriate.

Wealsoconsidertheinclusionofsensitivitydisclosurestobeappropriate.

How we tailored the audit scope

Wetailoredthescopeofouraudittoensurethatweperformed

enoughworktobeabletogiveanopiniononthefinancialstatements

asawhole,takingintoaccountthestructureoftheGroupandthe

ParentCompany,theaccountingprocessesandcontrols,andthe

industryinwhichtheyoperate.

Weidentifiedthreefinanciallysignificantcomponents,being

AirwairInternationalLimited,Dr.MartensAirwairUSALLCand

DrMartensAirwairWholesaleLimited,whereafullscopeaudithas

beenperformed.Inaddition,attherequestofmanagementand

theAuditandRiskCommittee,weperformedafullscopeauditon

Dr.MartensAirwairJapanK.K.Toachievethecoveragedesired,

weidentifiedafurtherfourcomponentswhereweperformedaudit

proceduresonspecificaccountswithineachcomponentbased

oneitherthesizeorriskprofileofthoseaccounts.

Whereworkwasperformedbycomponentauditors,detailed

instructionswereissuedbytheGroupauditteamandweconducted

conferencecallswithcomponentteams.Forourfinanciallysignificant

andmaterialcomponents,oversightproceduresincludedregular

communicationwiththecomponentteam,reviewingtheirworking

papers,andattendingtheclearancemeetingsvirtually.Forthefour

componentswhereprocedureswereperformedonspecific

accounts,theGroupauditteameitherperformedauditworkdirectly

onthecomponent,orwerevieweddeliverablesreceivedand

attendedclearancemeetingsoftheothercomponents.Specificaudit

proceduresovercentralfunctionsandareasofsignificantjudgement,

includingtheconsolidation,leases,sharebasedpayments,taxation,

pensionsandthecarryingvalueofbothgoodwillandassets

attributabletostores,wereperformedbytheGroupteamcentrally.

The components where we performed

audit procedures covered approximately:

GROUP

REVENUE

GROUP PROFIT

BEFORE TAX

GROUP NET

ASSETS

USA

• Fullscope

auditofone

component

• Fullscope

auditoftwo

components

JAPAN

• Fullscope

auditofone

component

Specifiedproceduresorauditofspecific

accountsof4additionalcomponents

FINANCIAL STATEMENTS

153DR. MARTENS PLC ANNUAL REPORT 2024

Materiality

Thescopeofourauditwasinfluencedbyourapplicationofmateriality.Wesetcertainquantitativethresholdsformateriality.These,together

withqualitativeconsiderations,helpedustodeterminethescopeofourauditandthenature,timingandextentofourauditprocedureson

theindividualfinancialstatementlineitemsanddisclosuresandinevaluatingtheeffectofmisstatements,bothindividuallyandinaggregate

onthefinancialstatementsasawhole.

Basedonourprofessionaljudgement,wedeterminedmaterialityforthefinancialstatementsasawholeasfollows:

Group Parent Company

Overall materiality

£7.2M

FY23

£8.0m

£14.1M

FY23

£14.0m

How we determined it

ofthethree-yearaverageofGroup

profitbeforetaxwithafurther

haircutappliedinthecurrentyear

andfortheprioryear5%ofthe

FY23Groupprofitbeforetax

of total

assets

Rationale for

benchmark applied

Weconsiderthemostappropriatebenchmarkon

whichtocalculatematerialitywastheGroup’sprofit

beforetaxasitisoneofthekeyindicatorsof

financialperformanceoftheGroup.Weuseathree

yearaveragefromFY22toFY24duetothevolatility

ofearningsinFY24.Wethenapplyafurtherhaircut

toreflectthedecreaseinperformanceseeninthe

currentyear.

AstheParentCompany,Dr.Martensplc,isaholding

companyfortheGroupthematerialitybenchmark

hasbeendeterminedbasedontotalassets,which

isagenerallyacceptedauditingbenchmark.

Performance materiality

£5.4M

FY23

£6.0m

£10.6M

FY23

£10.6m

How we determined it

75%

ofoverall

materiality

75%

ofoverall

materiality

Level above which we

report to the Audit and

Risk Committee

£360,000

FY23

£400,000

£700,000

FY23

£700,000

Weagreedwewouldalsoreportmisstatementsbelowthoseamountsthat,inourview,warranted

reportingforqualitativereasons.

Component materiality

£1.0M £6.8M

ForeachcomponentinthescopeofourGroupaudit,weallocatedamaterialitythatislessthanouroverallGroupmateriality.Certain

componentswereauditedtoalocalstatutoryauditmaterialitythatwasalsolessthanouroverallGroupmateriality.

Weuseperformancematerialitytoreducetoanappropriatelylowleveltheprobabilitythattheaggregateofuncorrectedandundetected

misstatementsexceedsoverallmateriality.Specifically,weuseperformancematerialityindeterminingthescopeofourauditandthe

natureandextentofourtestingofaccountbalances,classesoftransactionsanddisclosures,forexampleindeterminingsamplesizes.

Indeterminingtheperformancemateriality,weconsideredanumberoffactors–thehistoryofmisstatements,riskassessmentand

aggregationriskandtheeffectivenessofcontrols–andconcludedthatanamountattheupperendofournormalrangewasappropriate.

154 DR. MARTENS PLC ANNUAL REPORT 2024

INDEPENDENT AUDITORS’ REPORT

TOTHEMEMBERSOFDR.MARTENSPLCCONTINUED

Inconsideringtheimpactofclimateriskonouraudit,we:

 Madeenquiriesofmanagementtounderstandthe

extentofthepotentialimpactofclimateriskonthe

Group’sfinancialstatementsandweremainedalert

whenperformingourauditproceduresforany

indicatorsoftheimpactofclimaterisk;

 Reviewedmanagement’sassessmentofclimaterisk

totheGroupandtheimpact,ifany,onthefinancial

statementsandimpairmenttesting.Managementhas

soughtadvicefromexternalsustainabilityexpertsto

helpthemunderstandtheenvironmentalchallenges

theyfaceandtosourcescience-basedinputsfortheir

assessmentofclimaterisk;

The impact of climate risk on our audit

 Readthedisclosuresinrelationtoclimateriskmade

intheotherinformationwithintheAnnualReportto

ascertainwhetherthedisclosuresarematerially

consistentwiththeGroupfinancialstatementsand

ourknowledgefromouraudit.Ourresponsibilityover

otherinformationisfurtherdescribedintheReporting

onotherinformationsectionofourreport;and

 Inquiredofmanagementtounderstandandevaluate

theGroup’sriskassessmentprocessinrelationto

climatechange.

OurproceduresdidnotidentifyanymaterialimpactasaresultofclimateriskontheconsolidatedandParentCompanyfinancialstatements.

Our ability to detect irregularities, including fraud, and our response

Irregularities,includingfraud,areinstancesofnon-compliance

withlawsandregulations.Wedesignproceduresinlinewithour

responsibilities,outlinedbelow,todetectmaterialmisstatements

inrespectofirregularities,includingfraud.Theextenttowhichour

proceduresarecapableofdetectingirregularities,includingfraud,

isdetailedbelow.

BasedonourunderstandingoftheGroupandindustry,weidentified

thattheprincipalrisksofnon-compliancewithlawsandregulations

relatedtoemploymentandtheUKListingRules,andweconsidered

theextenttowhichnon-compliancemighthaveamaterialeffect

onthefinancialstatements.Wealsoconsideredthoselawsand

regulationsthathaveadirectimpactonthefinancialstatements

suchastheCompaniesAct2006andtaxlegislation.Weevaluated

management’sincentivesandopportunitiesforfraudulent

manipulationofthefinancialstatements(includingtheriskofoverride

ofcontrols),anddeterminedthattheprincipalriskswererelatedto

postingofjournalsthatdidnotresultinanexpectedcombinationwith

revenuepostingsandmanagementbiasinaccountingestimates.

TheGroupengagementteamsharedthisriskassessmentwiththe

componentauditorssothattheycouldincludeappropriateaudit

proceduresinresponsetosuchrisksintheirwork.

Thereareinherentlimitationsintheseauditprocedures.Weare

lesslikelytobecomeawareofinstancesofnon-compliancewith

lawsandregulationsthatarenotcloselyrelatedtoeventsand

transactionsreflectedinthefinancialstatements.Also,theriskof

notdetectingamaterialmisstatementduetofraudishigherthan

theriskofnotdetectingoneresultingfromerror,asfraudmay

involvedeliberateconcealmentby,forexample,forgeryor

intentionalmisrepresentations,orthroughcollusion.

Ouraudittestingmightincludetestingcompletepopulationsof

certaintransactionsandbalances,possiblyusingdataauditing

techniques.However,ittypicallyinvolvesselectingalimitednumber

ofitemsfortesting,ratherthantestingcompletepopulations.We

willoftenseektotargetparticularitemsfortestingbasedontheir

sizeorriskcharacteristics.Inothercases,wewilluseaudit

samplingtoenableustodrawaconclusionaboutthepopulation

fromwhichthesampleisselected.

AuditproceduresperformedbytheGroupengagementteam

and/orcomponentauditorsincluded:

 DiscussionswiththeDirectors,theAuditandRisk

CommitteeandGroupGeneralCounsel;

 Reviewoflegalcorrespondence,internalaudit

reports,whistleblowingreportsandBoardmeeting

minutesandconsiderationofknownorsuspected

instancesofnon-compliancewithlawsand

regulations,andfraud;

 Challengingmanagementonitscriticalaccounting

estimatesandjudgements;

 Identifyingandtestingjournalentriestoaddressthe

riskofinappropriatejournalsaspreviouslyreferredto;

 Auditofthetaxchargeanddeferredtaxbalances

including,supportedbyPwCexperts,areviewofthe

transferpricingpolicy;and

 Reviewingthefinancialstatementdisclosuresand

agreeingtounderlyingsupportingdocumentation.

FINANCIAL STATEMENTS

155DR. MARTENS PLC ANNUAL REPORT 2024

 Assessingtheriskaroundgoingconcernattheplanning

andyearendphasesoftheaudit;

 PerformingawalkthroughoftheGroup’sfinancial

statementcloseprocess,budgetingandforecasting

processandconfirmingourunderstandingof

management’sgoingconcernassessmentprocess;

 Obtainingmanagement’sgoingconcernmodelwhich

includedabasecase,andaseverebutplausible

downsidescenariocoveringthegoingconcern

assessmentperiod.Inadditiontotheseverebut

plausibledownsidescenario,managementprepared

reversestresstestscenarios;

 Criticallyassessingtheassumptionswithinthemodels

including;assessingthehistoricalaccuracyof

management’sforecastingandobtainingcorroborating,

andconsideringcontradictory,evidenceforthe

assumptionsused;

 Consideringtheassumptionsmaderegardingthe

furthercontinuationofweakerconsumersentimentand

lowerdemandfortheGroup’sproductsandtheimpact

offactoryclosuresinoneofthekeyproduction

geographicareasintheseverebutplausibledownside

caseandassessingwhethertherewereanyother

scenarioswhichshouldbeconsidered;

Conclusions relating to going concern

 Assessingwhetheritwasplausiblethatmanagement

couldactionthemitigationsidentifiedintheseverebut

plausibledownsidescenario;

 Performingindependentsensitivityanalysistothe

severebutplausiblecasetoassesstheimpacton

liquidityandcovenantheadroom;

 ObtainingandreviewingtheGroup’sfinancing

agreement,confirmingourunderstandingofthe

agreementsincludingthoserelatingtocovenanttest

ratiorequirements,andunderstandingthenatureof

recentinteractionswiththeGroup’sfinancingpartners.

Checkingthecalculationofheadroominrespectof

thefinancialcovenanttestratiosandassessingthe

Group’sforecastcompliancewithbankingcovenant

requirements;and

 Confirmingthatconsistentapproachestogoing

concern,viability,impairmentandotherkeyareas

ofestimationhavebeenused.

OurevaluationoftheDirectors’assessmentoftheGroup’sandtheParentCompany’sabilitytocontinuetoadoptthegoingconcern

basisofaccountingincluded:

Basedontheworkwehaveperformed,wehavenotidentified

anymaterialuncertaintiesrelatingtoeventsorconditionsthat,

individuallyorcollectively,maycastsignificantdoubtontheGroup’s

andtheParentCompany’sabilitytocontinueasagoingconcern

foraperiodofatleasttwelvemonthsfromwhenthefinancial

statementsareauthorisedforissue.

Inauditingthefinancialstatements,wehaveconcludedthatthe

Directors’useofthegoingconcernbasisofaccountinginthe

preparationofthefinancialstatementsisappropriate.

However,becausenotallfutureeventsorconditionscanbe

predicted,thisconclusionisnotaguaranteeastotheGroup’s

andtheParentCompany’sabilitytocontinueasagoingconcern.

InrelationtotheDirectors’reportingonhowtheyhaveappliedthe

UKCorporateGovernanceCode,wehavenothingmaterialtoadd

ordrawattentiontoinrelationtotheDirectors’statementinthe

financialstatementsaboutwhethertheDirectorsconsideredit

appropriatetoadoptthegoingconcernbasisofaccounting.

OurresponsibilitiesandtheresponsibilitiesoftheDirectorswith

respecttogoingconcernaredescribedintherelevantsections

ofthisreport.

156 DR. MARTENS PLC ANNUAL REPORT 2024

INDEPENDENT AUDITORS’ REPORT

TOTHEMEMBERSOFDR.MARTENSPLCCONTINUED

Reporting on other information

TheotherinformationcomprisesalloftheinformationintheAnnual

Reportotherthanthefinancialstatementsandourauditors’report

thereon.TheDirectorsareresponsiblefortheotherinformation.

Ouropiniononthefinancialstatementsdoesnotcovertheother

informationand,accordingly,wedonotexpressanauditopinionor,

excepttotheextentotherwiseexplicitlystatedinthisreport,any

formofassurancethereon.

Inconnectionwithourauditofthefinancialstatements,our

responsibilityistoreadtheotherinformationand,indoingso,

considerwhethertheotherinformationismateriallyinconsistent

withthefinancialstatementsorourknowledgeobtainedinthe

audit,orotherwiseappearstobemateriallymisstated.Ifweidentify

anapparentmaterialinconsistencyormaterialmisstatement,we

arerequiredtoperformprocedurestoconcludewhetherthereisa

materialmisstatementofthefinancialstatementsoramaterial

misstatementoftheotherinformation.If,basedontheworkwe

haveperformed,weconcludethatthereisamaterialmisstatement

ofthisotherinformation,wearerequiredtoreportthatfact.Wehave

nothingtoreportbasedontheseresponsibilities.

WithrespecttotheStrategicreportandDirectors’report,wealso

consideredwhetherthedisclosuresrequiredbytheUKCompanies

Act2006havebeenincluded.

Basedonourworkundertakeninthecourseoftheaudit,the

CompaniesAct2006requiresusalsotoreportcertainopinions

andmattersasdescribedbelow.

STRATEGIC REPORT AND DIRECTORS’ REPORT

Inouropinion,basedontheworkundertakeninthecourseofthe

audit,theinformationgivenintheStrategicreportandDirectors’

reportfortheyearended31March2024isconsistentwiththe

financialstatementsandhasbeenpreparedinaccordancewith

applicablelegalrequirements.

InlightoftheknowledgeandunderstandingoftheGroupand

ParentCompanyandtheirenvironmentobtainedinthecourse

oftheaudit,wedidnotidentifyanymaterialmisstatementsin

theStrategicreportandDirectors’report.

DIRECTORS’ REMUNERATION

Inouropinion,thepartoftheRemunerationreporttobeauditedhas

beenproperlypreparedinaccordancewiththeCompaniesAct2006.

Corporate governance statement

TheListingRulesrequireustoreviewtheDirectors’statementsin

relationtogoingconcern,longer-termviabilityandthatpartofthe

corporategovernancestatementrelatingtotheParentCompany’s

compliancewiththeprovisionsoftheUKCorporateGovernanceCode

specifiedforourreview.Ouradditionalresponsibilitieswithrespect

tothecorporategovernancestatementasotherinformationare

describedintheReportingonotherinformationsectionofthisreport.

Basedontheworkundertakenaspartofouraudit,wehave

concludedthateachofthefollowingelementsofthecorporate

governancestatementismateriallyconsistentwiththefinancial

statementsandourknowledgeobtainedduringtheaudit,andwe

havenothingmaterialtoaddordrawattentiontoinrelationto:

• TheDirectors’confirmationthattheyhavecarriedoutarobust

assessmentoftheemergingandprincipalrisks;

• ThedisclosuresintheAnnualReportthatdescribethoseprincipal

risks,whatproceduresareinplacetoidentifyemergingrisksand

anexplanationofhowthesearebeingmanagedormitigated;

• TheDirectors’statementinthefinancialstatementsaboutwhether

theyconsidereditappropriatetoadoptthegoingconcernbasis

ofaccountinginpreparingthem,andtheiridentificationofany

materialuncertaintiestotheGroup’sandParentCompany’sability

tocontinuetodosooveraperiodofatleasttwelvemonthsfrom

thedateofapprovalofthefinancialstatements;

• TheDirectors’explanationastotheirassessmentoftheGroup’s

andParentCompany’sprospects,theperiodthisassessment

coversandwhytheperiodisappropriate;and

• TheDirectors’statementastowhethertheyhaveareasonable

expectationthattheParentCompanywillbeabletocontinuein

operationandmeetitsliabilitiesastheyfalldueovertheperiod

ofitsassessment,includinganyrelateddisclosuresdrawing

attentiontoanynecessaryqualificationsorassumptions.

FINANCIAL STATEMENTS

157DR. MARTENS PLC ANNUAL REPORT 2024

OurreviewoftheDirectors’statementregardingthelonger-term

viabilityoftheGroupandParentCompanywassubstantiallyless

inscopethananauditandonlyconsistedofmakinginquiriesand

consideringtheDirectors’processsupportingtheirstatement;

checkingthatthestatementisinalignmentwiththerelevant

provisionsoftheUKCorporateGovernanceCode;andconsidering

whetherthestatementisconsistentwiththefinancialstatements

andourknowledgeandunderstandingoftheGroupandParent

Companyandtheirenvironmentobtainedinthecourseoftheaudit.

Inaddition,basedontheworkundertakenaspartofouraudit,we

haveconcludedthateachofthefollowingelementsofthecorporate

governancestatementismateriallyconsistentwiththefinancial

statementsandourknowledgeobtainedduringtheaudit:

• TheDirectors’statementthattheyconsidertheAnnualReport,

takenasawhole,isfair,balancedandunderstandable,and

providestheinformationnecessaryforthememberstoassess

theGroup’sandParentCompany’sposition,performance,

businessmodelandstrategy;

• ThesectionoftheAnnualReportthatdescribesthereviewof

effectivenessofriskmanagementandinternalcontrolsystems;and

• ThesectionoftheAnnualReportdescribingtheworkofthe

AuditandRiskCommittee.

Wehavenothingtoreportinrespectofourresponsibilitytoreport

whentheDirectors’statementrelatingtotheParentCompany’s

compliancewiththeCodedoesnotproperlydiscloseadeparture

fromarelevantprovisionoftheCodespecifiedundertheListing

Rulesforreviewbytheauditors.

Responsibilities for the financial statements

and the audit

RESPONSIBILITIES OF THE DIRECTORS FOR THE

FINANCIAL STATEMENTS

AsexplainedmorefullyintheStatementofDirectors’

Responsibilitiesinrespectofthefinancialstatements,theDirectors

areresponsibleforthepreparationofthefinancialstatementsin

accordancewiththeapplicableframeworkandforbeingsatisfied

thattheygiveatrueandfairview.TheDirectorsarealsoresponsible

forsuchinternalcontrolastheydetermineisnecessarytoenable

thepreparationoffinancialstatementsthatarefreefrommaterial

misstatement,whetherduetofraudorerror.

Inpreparingthefinancialstatements,theDirectorsareresponsible

forassessingtheGroup’sandtheParentCompany’sabilityto

continueasagoingconcern,disclosing,asapplicable,matters

relatedtogoingconcernandusingthegoingconcernbasisof

accountingunlesstheDirectorseitherintendtoliquidatetheGroup

ortheParentCompanyortoceaseoperations,orhavenorealistic

alternativebuttodoso.

AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE

FINANCIAL STATEMENTS

Ourobjectivesaretoobtainreasonableassuranceabout

whetherthefinancialstatementsasawholearefreefrommaterial

misstatement,whetherduetofraudorerror,andtoissuean

auditors’reportthatincludesouropinion.Reasonableassurance

isahighlevelofassurance,butisnotaguaranteethatanaudit

conductedinaccordancewithISAs(UK)willalwaysdetecta

materialmisstatementwhenitexists.Misstatementscanarise

fromfraudorerrorandareconsideredmaterialif,individually

orintheaggregate,theycouldreasonablybeexpectedto

influencetheeconomicdecisionsofuserstakenonthebasis

ofthesefinancialstatements.

Afurtherdescriptionofourresponsibilitiesfor

theauditofthefinancialstatementsislocated

ontheFRC’swebsiteat:

www.frc.org.uk/auditorsresponsibilities

Thisdescriptionformspartofourauditors’report.

USE OF THIS REPORT

Thisreport,includingtheopinions,hasbeenpreparedforandonly

fortheParentCompany’smembersasabodyinaccordancewith

Chapter3ofPart16oftheCompaniesAct2006andfornoother

purpose.Wedonot,ingivingtheseopinions,acceptorassume

responsibilityforanyotherpurposeortoanyotherpersontowhom

thisreportisshownorintowhosehandsitmaycomesavewhere

expresslyagreedbyourpriorconsentinwriting.

158 DR. MARTENS PLC ANNUAL REPORT 2024

INDEPENDENT AUDITORS’ REPORT

TOTHEMEMBERSOFDR.MARTENSPLCCONTINUED

Other required reporting

COMPANIES ACT 2006 EXCEPTION REPORTING

UndertheCompaniesAct2006wearerequiredtoreporttoyouif,

inouropinion:

• wehavenotobtainedalltheinformationandexplanationswe

requireforouraudit;or

• adequateaccountingrecordshavenotbeenkeptbytheParent

Company,orreturnsadequateforouraudithavenotbeen

receivedfrombranchesnotvisitedbyus;or

• certaindisclosuresofDirectors’remunerationspecifiedbylaw

arenotmade;or

• theParentCompanyfinancialstatementsandthepartofthe

Remunerationreporttobeauditedarenotinagreementwith

theaccountingrecordsandreturns.

Wehavenoexceptionstoreportarisingfromthisresponsibility.

Other matter

TheParentCompanyisrequiredbytheFinancialConductAuthority

DisclosureGuidanceandTransparencyRulestoincludethese

financialstatementsinanannualfinancialreportpreparedunderthe

structureddigitalformatrequiredbyDTR4.1.15R–4.1.18Randfiled

ontheNationalStorageMechanismoftheFinancialConduct

Authority.Thisauditors’reportprovidesnoassuranceoverwhether

thestructureddigitalformatannualfinancialreporthasbeen

preparedinaccordancewiththoserequirements.

Jonathan Sturges (Senior Statutory Auditor)

forandonbehalfofPricewaterhouseCoopersLLP

CharteredAccountantsandStatutoryAuditors

London

29May2024

FINANCIAL STATEMENTS

159DR. MARTENS PLC ANNUAL REPORT 2024

Note

		FY24	FY23
		£m	£m
Revenue	3	8 7 7. 1	1,0 0 0.3
Costofsales		(3 01 . 9)	(3 8 2 . 2)
Gross profit		575. 2	618.1
Sellingandadministrativeexpenses	4	(4 5 3 . 0)	(4 41 .9)
Financeincome		3.0	1 .9
Financeexpense	7	(3 2 . 2)	(18 .7)
Profit before tax		93.0	15 9.4
EBITDA	3	1 9 7. 5	24 5.0
Depreciationandamortisation	4	(7 2 . 3)	(5 4 . 2)
Impairment	4	–	(3 . 9)
Foreignexchangelosses		(4 . 2)	(1 0.7)
Othergains		1.2	–
Netfinanceexpense		(2 9. 2)	(1 6 . 8)
Profit before tax		93.0	159 .4
Taxexpense	8	(23.8)	(3 0. 5)
Profit for the year		69. 2	128 .9
	Note	FY24	FY23
Earnings per share
Basic	9	7. 0 p	1 2.9p
Diluted	9	7. 0p	12 .9p

1. AlternativePerformanceMeasure(APM)asdefinedintheGlossaryonpages220and221.

Theresultsfortheyearspresentedabovearederivedfromcontinuingoperationsandareentirelyattributabletotheownersofthe

ParentCompany.

Thenotesonpages165to206formpartoftheseConsolidatedFinancialStatements.

160 DR. MARTENS PLC ANNUAL REPORT 2024

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FORTHEYEARENDED31MARCH2024

Note

		FY24	FY23
		£m	£m
Profit for the year		69. 2	128 .9
Other comprehensive (expense)/income
Items that may subsequently be reclassified to profit or loss
Foreigncurrencytranslationdifferences		(2 . 8)	5.5
Cashflowhedges:Fairvaluemovementsinequity		(1 . 8)	1.8
Cashflowhedges:Reclassifiedandreportedinprofitorloss	19	3.9	(2. 5)
Taxinrelationtoshareschemes	8	0. 5	–
Taxinrelationtocashflowhedges	8	(0.7)	0.2
		(0. 9)	5.1
Total comprehensive income for the year		68.3	13 4.0

Thenotesonpages165to206formpartoftheseConsolidatedFinancialStatements.

FINANCIAL STATEMENTS

161DR. MARTENS PLC ANNUAL REPORT 2024

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FORTHEYEARENDED31MARCH2024

ASSETS Note(s)

		FY24	FY23
		£m	£m
Non-current assets
Intangibleassets	11	270.0	26 5.6
Property,plantandequipment	12	59. 4	61.3
Right-of-useassets	12	17 3 . 5	14 4. 1
Investments	20	1 .0	1 .0
Derivativefinancialassets	19	0.1	–
Deferredtaxassets	22	11. 2	11 .8
		51 5. 2	483.8
Current assets
Inventories	13	2 54.6	2 5 7. 8
Tradeandotherreceivables	14	68.8	9 3.0
Incometaxassets		1.2	–
Derivativefinancialassets	19	1 .5	0.5
Cashandcashequivalents	15	111 .1	157 .5
		4 3 7. 2	508.8
Total assets		952 .4	992.6
LIABILITIES
Current liabilities
Tradeandotherpayables	16	(92 . 2)	(1 2 7. 7)
Borrowings	17	(8. 4)	(6.0)
Leaseliabilities	17,28	(4 7. 0)	(28.1)
Derivativefinancialliabilities	19	(0. 1)	(1 . 3)
Incometaxpayable		(5. 8)	(1 . 4)
		(1 5 3 . 5)	(16 4 .5)
Non-current liabilities
Borrowings	17	(2 8 6. 3)	(2 9 3 . 4)
Leaseliabilities	17,28	(1 3 5 . 3)	(1 24. 3)
Provisions	18	(6 . 3)	(4 .4)
Deferredtaxliabilities	22	(2 . 8)	(1 . 8)
		(4 3 0 .7)	(4 2 3 .9)
Total liabilities		(5 8 4. 2)	(5 8 8 .4)
Net assets		368.2	40 4.2
EQUITY
Equity attributable to the owners of the Parent
Ordinarysharecapital	23	9.6	10.0
Treasuryshares	24	–	–
Hedgingreserve	25	0. 9	(0 .5)
Capitalredemptionreserve	25	0.4	–
Mergerreserve	25	(1 , 4 0 0 . 0)	(1,4 00.0)
Foreigncurrencytranslationreserve	25	9.7	1 2.5
Retainedearnings	25	1 , 74 7. 6	1 ,78 2 . 2
Total equity		368.2	40 4.2

Thenotesonpages165to206formpartoftheseConsolidatedFinancialStatements.

The Consolidated Financial Statements on pages 160 to 206 were approved and authorised by the Board of Directors on 29 May 2024

and signed on its behalf by:

KENNY WILSON GILES WILSON

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER

162 DR. MARTENS PLC ANNUAL REPORT 2024

CONSOLIDATED BALANCE SHEET

ASAT31MARCH2024

		Ordinary			Capital		Foreign
		share	Treasury	Hedging	redemption	Merger	translation	Retained	Total
		capital	shares	reserve	reserve	reserve	reserve	earnings	equity
	Note(s)	£m	£m	£m	£m	£m	£m	£m	£m
At 1 April 2022		10.0	–	(0. 1)	–	(1 , 4 0 0 . 0)	7. 0	1 ,711 .3	32 8.2
Profitfortheyear		–	–	–	–	–	–	1 28.9	1 28.9
Othercomprehensive(expense)/income		–	–	(0. 4)	–	–	5.5	–	5.1
Totalcomprehensive(expense)/income
fortheyear		–	–	(0. 4)	–	–	5.5	1 28.9	1 34 .0
Dividendspaid	10	–	–	–	–	–	–	(5 8 . 4)	(5 8 . 4)
Share-basedpayments	26	–	–	–	–	–	–	0 .4	0.4
At 31 March 2023		10.0	–	(0. 5)	–	(1 , 4 0 0 . 0)	12 .5	1 ,7 82 . 2	40 4.2
Profitfortheyear		–	–	–	–	–	–	69. 2	6 9.2
Othercomprehensiveincome/(expense)		–	–	1 .4	–	–	(2 . 8)	0.5	(0 .9)
Totalcomprehensiveincome/(expense)
fortheyear		–	–	1.4	–	–	(2 . 8)	6 9.7	68.3
Dividendspaid	10	–	–	–	–	–	–	(5 7 . 8)	(5 7 . 8)
Sharesissued	23	–	–	–	–	–	–	–	–
Share-basedpayments	26	–	–	–	–	–	–	4.0	4 .0
Repurchaseofordinarysharecapital	23,24	–	(50.0)	–	–	–	–	(0 .5)	(5 0. 5)
Cancellationofrepurchasedordinary
sharecapital	23,24	(0. 4)	50.0	–	0.4	–	–	(50.0)	–
At 31 March 2024	XX	9.6	–	0.9	0. 4	(1 , 4 0 0 .0)	9 .7	1 , 7 4 7. 6	368. 2

Thenotesonpages165to206formpartoftheseConsolidatedFinancialStatements.

FINANCIAL STATEMENTS

163DR. MARTENS PLC ANNUAL REPORT 2024

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FORTHEYEARENDED31MARCH2024

Note

		FY24	FY23
		£m	£m
Profit after taxation		6 9.2	1 28.9
Addback:incometaxexpense	8	23.8	3 0.5
financeincome		(3 .0)	(1 .9)
financeexpense	7	32. 2	1 8 .7
depreciation,amortisationandimpairment		72. 3	5 8.1
othergains		(1 . 2)	–
foreignexchangelosses		4.2	1 0.7
share-basedpaymentscharge	26	4.0	0.5
Increaseininventories		(1 . 6)	(1 3 3 . 2)
Decrease/(increase)intradeandotherreceivables		23.0	(6 .6)
Decreaseintradeandotherpayables		(37 .7)	(9 . 2)
Changeinnetworkingcapital		(1 6 . 3)	(1 4 9. 0)
Cash flows from operating activities
Cashgeneratedfromoperations		185. 2	96.5
Taxationpaid		(1 8 . 8)	(2 2 .3)
Settlementofmaturedderivatives		1.5	(1 .5)
Net cash inflow from operating activities		167 .9	7 2.7
Cash flows from investing activities
Additionstointangibleassets	11	(1 0 . 2)	(1 1 . 8)
Additionstoproperty,plantandequipment	12	(1 8 . 2)	(3 9 . 6)
Financeincomereceived		2.9	1.6
Capitalcontributionsreceivedforright-of-useassets		–	0. 2
Purchaseofequityinvestment	20	–	(1 .0)
Net cash outflow from investing activities		(2 5. 5)	(50.6)
Cash flows from financing activities
Financeexpensepaid		(1 9 . 9)	(7. 2)
Paymentofleaseinterest	28	(8 .6)	(4 . 8)
Paymentofleaseliabilities	28	(4 3 .6)	(2 9 .1)
Repurchaseofshares	23	(5 0. 5)	–
Revolvingcreditfacilitydrawdown	17	3 0.0	–
Revolvingcreditfacilityrepayment	17	(3 0 .0)	–
Settlementofmaturedderivatives		(5. 5)	4.6
Dividendspaid	10	(57.8)	(5 8 .4)
Net cash outflow from financing activities		(1 8 5 . 9)	(9 4 . 9)
Net decrease in cash and cash equivalents		(4 3 . 5)	(72 . 8)
Cashandcashequivalentsatbeginningofyear		1 5 7. 5	22 8.0
Effectofforeignexchangeoncashheld		(2 .9)	2.3
Cash and cash equivalents at end of year	15	111 .1	157 .5

Thenotesonpages165to206formpartoftheseConsolidatedFinancialStatements.

164 DR. MARTENS PLC ANNUAL REPORT 2024

CONSOLIDATED STATEMENT OF CASH FLOWS

FORTHEYEARENDED31MARCH2024

1. General information

Dr. Martens plc (the ‘Company’) is a public company limited by shares incorporated in the United Kingdom, and registered and domiciled

in England and Wales, whose shares are traded on the London Stock Exchange. The Company’s registered office is: 28 Jamestown Road,

Camden, London NW1 7BY. The principal activity of the Company and its subsidiaries (together referred to as the ‘Group’) is the design,

development, procurement, marketing, selling and distribution of footwear, under the Dr. Martens brand.

2. Accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently

applied to the periods presented, unless otherwise stated. Amounts are presented in GBP and to the nearest million pounds (to one decimal

place) unless otherwise noted. The reporting period is defined as the year ended 31 March 2024 and year ended 31 March 2023 for the

comparative period.

2.1 BASIS OF PREPARATION

The Consolidated Financial Statements of the Group have been prepared in accordance with UK-adopted International Accounting

Standards in conformity with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.

The Group’s Consolidated Financial Statements have been prepared on a going concern basis under the historical cost convention,

except for equity investments, derivative financial instruments, money market funds, share-based payments and pension scheme assets

that have been measured at fair value.

Certain amounts in the Statement of Profit or Loss and the Balance Sheet have been grouped together for clarity, with their breakdown

being shown in the notes to the financial statements. The distinction presented in the Balance Sheet between current and non-current

entries has been made on the basis of whether the assets and liabilities fall due within more than one year.

Consideration of climate risk matters

The Group continues to assess the impact of climate risk matters on many aspects of the business, including climate related scenario

analysis as required by the Task Force on Climate-Related Disclosures. Building on this scenario analysis, consideration has been given

to the impact of climate related risk on management judgements and estimates, and compliance with existing accounting requirements.

The incurred costs and investments associated with our sustainability strategy are reflected in the Group’s Financial Statements. The

impact of climate related risk matters is not expected to be material to the 31 March 2024 Consolidated Financial Statements, the Group

going concern assessments to 30 September 2025, or the viability of the Group over the next three years.

Financial calendar

During the year, the Group amended the basis of preparation of the Consolidated Financial Statements to align with the operational trading

of the business; by moving from a calendar year to a retail calendar basis. The retail calendar will report a 52-week year, split into monthly

5-4-4 Monday to Sunday week formats. A 53-week year will be reported around every six years to avoid the retail calendar deviating by

more than seven days to the calendar year and accounting reference date of 31 March. As 31 March 2024 falls on a Sunday, the FY25

period will begin on a Monday and conform to a retail calendar thereafter.

Going concern

The financial statements have been prepared on the going concern basis. The going concern assessment covers at least the 12-month

period from the date of the signing of the financial statements, and the going concern basis is dependent on the Group maintaining

adequate levels of resources to operate during the period. To support this assessment, detailed trading and cash flow forecasts, including

forecast liquidity and covenant compliance, were prepared for the 16-month period to 30 September 2025. The Directors’ assessment

used the same assumptions and methods as the viability assessment on pages 44 and 45.

The key stages of the assessment process are summarised as follows:

• The Group planning process forms the basis of the Going Concern review, starting from the DOCS strategy and producing outputs

for long, medium and short term financial plans, based on key assumptions which are agreed with the GLT and Board.

• The trading outlook over the long, medium and short term is evaluated, contextualising our assessments within the broader

macroeconomic environment.

• Micro and macro central planning assumptions are identified and incorporated into the assessments.

• The Directors of the Group have considered the future position based on current trading and a number of potential downside scenarios

which may occur, including the impact of appropriate principal risks crystallising.

• Further details on the potential downside scenarios relevant to the going concern assessment period have been included on the next page.

FINANCIAL STATEMENTS

165DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024

2. Accounting policies continued

Going concerncontinued

The Directors also considered the Group’s funding arrangements at 31 March 2024 with cash of £111.1m, available undrawn facilities

of £194.5m and bullet debt repayment of £288.6m not due until 2 February 2026.

Consistent with the Viability Statement on pages 44 and 45, management have modelled, and the Directors have reviewed ‘top-down’

sensitivity and stress testing, including a review of the cash flow projections and covenant compliance under a severe but plausible

scenario in relation to two main risks and specific ‘black swan’ events assessed which are detailed below:

• the impact of a factory closure in one key production geographic area due to climate change (flooding).

• weaker consumer sentiment and lower demand.

‘Top-down’ sensitivity and stress testing included a review of the cash flow projections and covenant compliance under a severe but plausible

scenario in relation to the downside scenarios described above. In the unlikely event of the above two scenarios occurring together, the Group

can withstand material revenue decline and by applying available mitigations, headroom above covenant requirements remain in line with

expectation and the Group continues to have satisfactory liquidity and covenant headroom throughout the period under review. Experience

over three years of FY22, FY23 and FY24 have indicated minimal wholesale bad debt risk and minimal margin risk with the principal risk to

meeting covenant compliance being lower revenue.

In modelling our severe but plausible downside we have incorporated the impact of a double digit decrease in revenue from the base

plan in the short term, with the base plan already representing a single digit decline versus FY24. Under this scenario, certain mitigations

are available or are intrinsically linked to the forecast, including some cost and cash savings that materialise immediately if the Group’s

performance is below budget and other planned and standard cost reductions.

A more extreme downside scenario is not considered plausible.

A reverse stress test has also been modelled to determine what could break covenant compliance estimates and liquidity before mitigating

actions. To model these reverse stress tests the impact on revenue of zero covenant headroom and zero liquidity was calculated at the end

of the going concern period. Under the covenant breach test it is concluded that the business could weather extreme growth reductions

without mitigation versus the base plan, with the base plan already representing a single digit decline versus FY24. The business would

have to experience -11%pts to revenue growth in the going concern period before covenants are breached. Similarly, the business would

have to experience -51%pts revenue growth reduction in the going concern period before zero cash headroom is reached. The Directors

have assessed the likelihood of occurrence to be remote.

We have also assessed the qualitative and quantitative impact of climate-related risks, as noted in our TCFD scenario analysis and above,

on asset recoverable amounts and concluded that there would not be a material impact on the business and cash flows in the going

concern period.

We will continue to monitor the impact of the macroeconomic backdrop and geopolitical events on the Group in the countries where we

operate, and we plan to maintain flexibility to react as appropriate.

2.2 BASIS OF CONSOLIDATION

The Consolidated Financial Statements comprise the financial statements of the Company and its subsidiaries as at 31 March 2024 and

31 March 2023. Control is achieved when the Group has rights to variable returns from its involvement with the investee and the ability to

use its power over the investee to affect the amount of the investor’s returns. Specifically, the Group controls an investee if, and only if, the

Group has:

• power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);

• exposure, or rights, to variable returns from its involvement with the investee; and

• the ability to use its power over the investee to affect its returns.

Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has

less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing

whether it has power over an investee, including:

• the contractual arrangement(s) with the other vote holders of the investee;

• rights arising from other contractual arrangements; and

• the Group’s voting rights and potential voting rights.

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of

the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when

the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year

are included in the Consolidated Financial Statements from the date the Group gains control until the date the Group ceases to control

the subsidiary.

166 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

2. Accounting policies continued

Profit or loss and each component of other comprehensive income are attributed to the equity holders of the parent of the Group.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the

Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions

between members of the Group are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other

components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value.

2.3 ADOPTION OF NEW AND REVISED STANDARDS

A number of new or amended standards became applicable for the current reporting period. These standards, amendments

or interpretations are not expected to have a material impact on the Group in the current or future reporting periods:

• Amendments to IAS 1 – Classification of liabilities as current, and disclosure of accounting policies

• Amendments to IAS 8 – Definition of accounting estimates

• Amendments to IAS 12 – Deferred tax related to assets and liabilities arising from a single transaction

• Amendments to IAS 12 – Pillar Two model rules

• Implementation of IFRS 17 – Insurance contracts

New standards and interpretations not yet applied

The following new or amended IFRS accounting standards, amendments and interpretations are not yet adopted and it is expected

that where applicable, these standards and amendments will be adopted on each respective effective date:

• Amendments to IAS 1 – Presentation of financial statements: non-current liabilities with covenants

• Amendments to IFRS 16 – Leases on sale and leaseback

• Amendments to IAS 7 and IFRS 7 – Supplier finance arrangements

These standards, amendments or interpretations are not expected to have a material impact on the Group in the current or future reporting periods.

2.4 ALTERNATIVE PERFORMANCE MEASURES (APMS)

Management exercises judgement in determining the adjustments to apply to IFRS measurements in order to derive suitable APMs.

As set out on pages 220 and 221 of the Glossary, APMs are used as management believes these measures provide additional useful

information on the underlying trends, performance and position of the Group. These measures are used for performance analysis.

The APMs are not defined by IFRS and therefore may not be directly comparable with other companies’ APMs. These measures are

not intended to be a substitute for, or superior to, IFRS measurements.

2.5 FOREIGN CURRENCY TRANSLATION

The Consolidated Financial Statements are presented in GBP, which is the Group’s presentational currency. The Group includes foreign

entities whose functional currencies are not GBP. On consolidation, the assets and liabilities of the Group entities that have a functional

currency different from the presentation currency are translated into GBP at the closing rate at the date of that Balance Sheet. Income

and expenses for each Statement of Profit or Loss are translated at average foreign exchange rates for the period. Foreign exchange

differences are recognised in other comprehensive income. The functional currency of each company in the Group is that of the primary

economic environment in which the entity operates. 

FINANCIAL STATEMENTS

167DR. MARTENS PLC ANNUAL REPORT 2024

2. Accounting policies continued

2.6 REVENUE

The Group’s revenue arises from the sale of goods to customers. Contracts with customers generally have one performance obligation.

The Group has concluded that the revenue from the sale of goods should be recognised at a point in time when control of the goods is

transferred to the customer, which is dependent on the revenue channel. Revenue is recognised at the invoiced price less any associated

discounts and sales taxes.

The Group assessed its revenue channels against the IFRS 15 five-step model, identifying the contracts, the performance obligations

and the transaction price, and then allocating this to determine the timing of revenue recognition. The revenue channels that have been

separately assessed are as follows:

• ecommerce revenue, including delivery charge income;

• retail revenue; and

• wholesale revenue.

Control is passed to the customer on the following basis under each of the revenue channels as follows:

• ecommerce channel: upon receipt of the goods by the customer;

• retail channel: upon completion of the transaction; and

• wholesale channel: upon delivery of the goods or upon dispatch to the customer if the customer takes responsibility for delivery.

The payment terms across each of these revenue channels varies. The payments for retail are received at the transfer of control.

Ecommerce payments are mainly received in advance of transfer of control by less than one week as there is a timing difference between

receipt of cash on order and receipt of goods by the customer. Wholesale customers pay on terms generally between 30 and 60 days.

Some contracts for the sale of goods provide customers with a right of return and rebates. Under IFRS 15, this gives rise to variable

consideration, which is constrained such that it is highly probable that significant reversal will not occur.

Rights of return

When a contract provides a customer with a right of return, under IFRS 15, the consideration is variable because the contract allows the

customer to return the product. The Group uses the expected value method to estimate the goods that will be returned and recognise a

refund liability and an asset for the goods to be recovered. Provisions for returned goods are calculated based on future expected levels

of returns for each channel, assessed across a variety of factors such as historical trends, economic factors and other measures.

Rebates

Under IFRS 15, rebates give rise to variable consideration. To estimate this the Group applies the most likely amount method.

2.7 FINANCE INCOME AND EXPENSES

Finance expenses consist of interest payable on various forms of debt and finance income consists of interest receivable amounts from

cash held. Both are recognised in the Statement of Profit or Loss under the effective interest rate method.

2.8 EXCEPTIONAL ITEMS

Exceptional items consist of material non-recurring items and items arising outside the normal trading of the Group.

2.9 TAXATION

The tax expense represents the sum of the tax currently payable and deferred tax movement recognised. The tax currently payable is based

on taxable profit. Taxable profit differs from net profit as reported in the Statement of Profit or Loss because it excludes items of income or

expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The Group’s liability

for current tax is calculated by using tax rates that have been enacted or substantively enacted by the end of each reporting period.

Tax provisions are recognised when there is a potential exposure to an uncertain tax position and an outflow of resources is probable. The

Group applies IFRIC 23 Uncertainty over Income Tax Treatments to measure uncertain tax positions. The Group calculates each provision

using either the expected value method or the most likely outcome method in line with the guidance contained within IFRIC 23. The

uncertain tax positions are reviewed regularly and there is ongoing monitoring of tax cases and rulings which could impact the provision.

168 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

2. Accounting policies continued

2.9 TAXATIONCONTINUED

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the

historical financial information and the corresponding tax bases used in the computation of taxable profit and is accounted for using the

Balance Sheet liability method based on rates that are enacted or substantively enacted by the end of each reporting period. Deferred

tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable

that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not

recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other

assets and liabilities in a transaction which affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognised

for taxable temporary differences arising in investments in subsidiaries except where the Group is able to control the reversal of the

temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of

deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient

taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised, or the liability is settled.

Deferred tax is charged or credited in the Statement of Profit or Loss, except when it relates to items credited or charged directly to equity,

in which case the deferred tax is also dealt with in equity. Both deferred tax assets and liabilities and current tax assets and liabilities are

offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, when they relate to income taxes

levied by the same taxation authority, and the Group intends to settle its current tax assets and liabilities on a net basis.

On 23 May 2023, the IASB issued an amendment to IAS 12 ‘Income Taxes’ to clarify how the effects of the global minimum tax framework

should be accounted for and disclosed effective 1 January 2023. This was endorsed by the UK Endorsement Board on 19 July 2023 and

has been adopted by the Group for 2024 reporting. The Group has applied the exemption to recognising and disclosing information about

deferred tax assets and liabilities related to Pillar Two income taxes.

2.10 DIVIDENDS

Final dividends are recorded in the financial statements in the period in which they are approved by the Company’s shareholders. Interim

dividends are recorded in the period in which they are approved and paid.

2.11 INTANGIBLE ASSETS

Goodwill

Business combinations are accounted for by applying the acquisition method. Goodwill acquired represents the excess of the fair value

of the consideration over the fair value of the identifiable net assets acquired.

After initial recognition, positive goodwill is measured at cost less any accumulated impairment losses. At the date of acquisition, the

goodwill is allocated to cash generating units, usually at business segment level or statutory company level as the case may be, for

the purpose of impairment testing and is tested at least annually for impairment, or if an indicator of impairment exists. On subsequent

disposal or termination of a business acquired, the profit or loss on termination is calculated after charging the carrying value of any

related goodwill. Negative goodwill is recognised directly in the Statement of Profit or Loss.

Separately acquired intangible assets

Separately acquired intangible assets comprise other intangibles. Other intangibles that have finite useful lives are carried at cost less

accumulated amortisation and any provision for impairment. The finite life other intangibles are amortised on a straight line basis over the

expected useful economic life of each of the assets, which is considered to be 5 to 15 years. Amortisation expense is charged to selling

and administrative expenses. Other intangibles with an indefinite useful life are carried at cost less impairment. These are other intangibles

for which the estimated useful life is indefinite. The carrying value of intangible assets is reviewed for impairment whenever events or

changes in circumstances indicate the carrying value may not be recoverable.

Software

Software comprises internally generated software development. Research expenditure is charged to income in the year in which it

is incurred. Development expenditure is charged to income in the year it is incurred unless it meets the recognition criteria of IAS 38

Intangible Assets to be capitalised as an intangible asset. Following initial recognition of the development expenditure as an asset, the

asset is carried at cost less any accumulated amortisation and impairment losses. Amortisation begins when development is complete,

and the asset is available for use. These assets are considered to have finite useful lives and are amortised on a straight line basis over

the expected useful economic life of the assets, which is considered to be 5 to 15 years. Amortisation expense is charged to selling and

administrative expenses. The carrying value of intangible assets is reviewed for impairment whenever events or changes in circumstances

indicate the carrying value may not be recoverable.

FINANCIAL STATEMENTS

169DR. MARTENS PLC ANNUAL REPORT 2024

2. Accounting policies continued

2.12 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is carried at cost less accumulated depreciation and provision for impairment. Depreciation is calculated

to write down the cost of the assets less estimated residual value over its expected useful life on a straight line basis as follows:

Freehold property	50 years
Freehold improvements	10 years
Leasehold improvements	Over the life of the lease
Plant and machinery	15 years
Fixtures and fittings	5-15 years
Office and computer equipment	3 years for computer equipment and 5 years for all other office equipment
Motor vehicles	3 years

Depreciation expense is charged to selling and administrative expenses. Any gain or loss arising on the derecognition of the asset

(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit

or Loss in the period that the asset is derecognised.

2.13 LEASE ACCOUNTING

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control

the use of an identified asset for a period of time in exchange for consideration.

Group as a lessee

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value

assets. As part of the measurement approach, the Group uses its incremental borrowing rate which is adjusted by both property type

and geography. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the

underlying assets.

i) Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use).

Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement

of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease

payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight

line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

Right-of-use-assets Shorter of lease term and estimated useful life (3 to 15 years)

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option,

depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the

accounting policies in the Impairment of non-financial assets section.

ii) Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be

made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives

receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.

The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments

of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate.

Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce

inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate (adjusted by both property type

and geography) at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the

commencement date, the amount of lease liabilities is increased to reflect the interest charge and reduced for the lease payments made.

In addition, the carrying amount of lease liabilities is remeasured if there is a modification that does not increase the scope of the lease,

a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or

rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. A lease

modification is accounted for as a separate lease where the modification increases the scope of the lease, and the lease consideration

increases by an amount reflecting the stand-alone price for the increase in scope.

The Group’s lease liabilities are included in interest-bearing loans and borrowings (note 17).

170 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

2. Accounting policies continued

2.13 LEASE ACCOUNTING

iii) Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e. those leases that

have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of

low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term

leases and leases of low-value assets are recognised as an expense on a straight line basis over the lease term.

2.14 IMPAIRMENT OF NON-FINANCIAL ASSETS

The carrying amounts of the Group’s relevant assets are reviewed at each year-end date to determine whether there is any indication

of impairment, and if an indicator is present the asset is tested for impairment. For goodwill and intangible assets that have an indefinite

useful life, an impairment test is also performed each year-end. If an impairment test is required, the Group estimates the asset’s

recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal and its value in use. An impairment

is present if the recoverable amount is less than the carrying value of the asset. Impairment losses are recognised in the Statement of

Profit or Loss in those expense categories consistent with the function of the impaired asset. Refer to notes 11 and 12 for further details.

2.15 INVENTORIES

Inventories are stated at the lower of cost and net realisable value. The cost of inventories consists of all costs of purchase, costs of design

and other costs incurred in bringing the inventory to its first point of sale location and condition. Inventories are valued at weighted average

cost, including freight to warehouse and duty. Net realisable value is based on estimated selling price less any costs expected to be

incurred to completion or disposal.

2.16 FINANCIAL INSTRUMENTS

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Consolidated Balance Sheet if there is a currently

enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets, and to settle

the liabilities simultaneously.

Categorisation of inputs for fair value measurements

Assets and liabilities held at fair value are categorised into levels that have been defined according to IFRS 13 ‘Fair Value Measurement’

measurement hierarchy as follows:

• quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);

• inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices)

or indirectly (that is, derived from prices) (Level 2); and

• inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).

The fair value of derivatives are calculated using valuation models to determine the fair values based on observable market curves such as

forward foreign exchange rates, discounted back to present value using risk free interest rates. The impacts of counterparty credit, volatility

and currency basis are also considered as part of the fair valuation where appropriate.

All financial instruments that are held at fair value use Level 2 inputs except for equity investments which use Level 3 inputs. Furthermore,

under IFRS 9, cost has been used as the best estimate for fair value for equity investments due to insufficient recent information available

to measure fair value.

2.17 FINANCIAL ASSETS

Recognition and derecognition

Purchases and sales of financial assets are recognised on trade date being the date on which the Group commits to purchase or sell

the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been

transferred and the Group has transferred substantially all the risks and rewards of ownership.

Investments

Equity investments that are not held for trading have been irrevocably designated as fair value through other comprehensive income.

Subsequent to initial recognition at fair value plus transaction costs, these assets are recorded at fair value at each period end with the

movements recognised in other comprehensive income until derecognition or impaired. On derecognition, the cumulative gain or loss

previously recognised in other comprehensive income is never recycled to the income statement. Dividends on financial assets at

fair value through other comprehensive income are recognised in the income statement when the entity’s right to receive payment is

established. Equity investments are recorded in non-current assets unless they are expected to be sold within one year.

FINANCIAL STATEMENTS

171DR. MARTENS PLC ANNUAL REPORT 2024

2. Accounting policies continued

2.17 FINANCIAL ASSETSCONTINUED

Trade and other receivables

Trade receivables are assessed under IFRS 9 and measured at amortised cost using the effective interest rate method. The Group

recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss (FVPL).

The most significant financial assets of the Group are its cash and trade receivables. ECLs are based on the difference between the

contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an

approximation of the original effective interest rate.

Cash and cash equivalents

Cash and cash equivalents primarily comprise cash held within bank accounts, Money Market Funds (MMFs) and bank term deposits

maturing less than three months from inception. All cash is held short term in highly liquid investments that are readily convertible to a

known amount of cash and are subject to an insignificant risk of changes in value.

Included within cash and cash equivalents are debit and credit card payments made by customers which are receivable from card acquiring

financial institutions, and cash in transit from various payment processing intermediaries that provide receipting services to the Group.

All cash and cash equivalents are measured at amortised cost with the exception of MMFs which are held at fair value through profit or loss.

Summary of the Group’s financial assets:

Financial asset	IFRS 9 classification
Investments	Fair value through other comprehensive income.
Trade and other receivables excluding	Amortised cost.
prepayments and accrued income
Derivative financial assets	Fair value through other comprehensive income.
Cash and cash equivalents	Amortised cost, except for cash amounts held within Money Market Funds which are held
	at fair value through profit or loss.

2.18 FINANCIAL LIABILITIES

The Group classifies and measures all of its non-derivative financial liabilities at amortised cost.

Initial recognition

Financial liabilities are classified according to the substance of the contractual arrangements entered into.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial

liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially

modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability.

The difference in the respective carrying amounts is recognised in the Statement of Profit or Loss.

Trade and other payables

Trade payables are obligations to pay for goods or services that have been acquired in the course of ordinary business from suppliers.

Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current

liabilities. Trade payables are recognised initially at fair value and subsequently held at amortised cost using the effective interest rate method.

Summary of the Group’s financial liabilities:

Financial liability	IFRS 9 classification
Bank debt	Amortised cost.
Bank interest	Amortised cost.
Lease liabilities	Amortised cost.
Derivative financial instruments	Fair value through other comprehensive income.
Trade and other payables excluding	Amortised cost.
non-financial liabilities

172 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

2. Accounting policies continued

2.19 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

The Group uses foreign exchange forward contracts to hedge its foreign currency risks. Such derivative financial instruments are initially

recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at fair value. The method of

recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of

the item being hedged.

Gains or losses arising from changes in fair value related to derivatives held in a cash flow hedge relationship are recognised in other

comprehensive income/(expense) and deferred in the hedging reserve to the extent that the hedges are deemed effective. Amounts are

transferred to the income statement in the same period in which the hedged risk affects the income statement and against the same line item.

The Group designates foreign exchange derivative hedges on a full forward or spot basis. Where only the spot element of a foreign

exchange derivative is designated, the cost of hedging election is applied to the forward points with fair value movements recognised

in other comprehensive income and released to profit or loss depending on the nature of the underlying hedged item.

The Group performs regular hedge effectiveness testing. For cash flow hedges where the forecast transaction is no longer expected to

occur, hedge accounting is discontinued, and all accumulated gains or losses held in the hedging reserve are immediately recognised in

profit or loss. Where hedge accounting is discontinued as a result of expiry, disposal or termination of the derivative instrument (and where

the hedge relationship was deemed to be effective), accumulated gains or losses up to the point of discontinuation are held in the hedging

reserve and released to profit or loss in line with the hedged item.

Derivative financial instruments consist of foreign currency exchange forward contracts, which are categorised within Level 2 under the

IFRS 13 measurement hierarchy (refer to note 2.16 for further detail on fair value level categorisation).

The full fair value of derivatives are classified as a non-current asset or liability if the remaining maturity of the derivatives are more than

12 months and as a current asset or liability if the maturity of the derivatives are less than 12 months.

2.20 BORROWINGS

Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently carried at amortised cost using

the effective interest rate method so that any difference between the proceeds (net of transaction costs) and the redemption value is

recognised in the Statement of Profit or Loss over the period of the borrowings. Details of the Group’s borrowings are included in note 17.

Borrowing costs

The Group expenses borrowing costs in the period the costs are incurred. Where borrowing costs are attributable to the acquisition,

construction or production of a qualifying asset, such costs are capitalised as part of the specific asset and amortised over the estimated

useful life of the asset. Details of the Group’s borrowings are included in note 17.

2.21 ORDINARY SHARE CAPITAL

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity

as a deduction, net of tax, from the proceeds.

Where the Company purchases any of its own equity instruments, for example, pursuant to the share buyback programme, the consideration

paid, including any directly attributable incremental costs, is deducted from equity attributable to the owners of the Company. The

repurchased shares are recognised as treasury shares until the shares are cancelled. The programme concluded on 19 December 2023 .

2.22 SEGMENTAL ANALYSIS

IFRS 8 ‘Operating Segments’ requires operating segments to be determined by the Group’s internal reporting to the Chief Operating

Decision Maker (CODM). The CODM has been determined to be both the CEO and CFO, who receive information on this basis of the

Group’s revenue in key geographical regions based on the Group’s management and internal reporting structure. The CODM assesses

the performance of geographical segments based on a measure of revenue and EBITDA

. To increase transparency the Group also

includes additional voluntary disclosure analysis of global revenue within different operating channels.

1. Alternative Performance Measure (APM) as defined in the Glossary on pages 220 and 221.

FINANCIAL STATEMENTS

173DR. MARTENS PLC ANNUAL REPORT 2024

2. Accounting policies continued

2.23 PENSION ARRANGEMENTS

The Group provides pension benefits which include both defined benefit and defined contribution arrangements.

Defined contribution pension schemes

For defined contribution schemes the amount charged to the Statement of Profit or Loss represents the contributions payable to the plans

in the accounting period. Differences between contributions payable in the period and contributions actually paid are shown as either

accruals or prepayments in the Balance Sheet.

Defined benefit pension scheme

The Group operates a defined benefit pension scheme, which requires contributions to be made to separately administered funds for

administration expenses. The Group did not make any contributions to the scheme in the year (FY23: £nil). The UK defined benefit

scheme was closed to new members on 6 April 2002, from which time membership of a defined contribution plan was available. It was

then closed to all future accrual for all existing members on 31 January 2006. A valuation of the Plan is carried out at least once every three

years to determine whether the Statutory Funding Objective is met. The last valuation was carried out at 30 June 2022, the next valuation

is due at 30 June 2025. No asset is recognised in the Balance Sheet in respect of defined benefit pension plans due to the uncertainty over

the Group’s right to a refund of the surplus from the scheme as set out in note 2.26. The defined benefit obligation is calculated annually

by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by

discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in

which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Past-service

costs are recognised immediately in income.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of

plan assets. The net interest cost is limited by the asset ceiling. When occurring, this cost is included in employee benefit expense in the

Statement of Profit or Loss. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are

charged or credited to equity in other comprehensive income in the period in which they arise.

2.24 SHARE INCENTIVE PLAN (SIP) TRUSTS

The Group operates two SIP Trusts for the benefit of its employees. Under accounting standard IFRS 10 Consolidated Financial

Statements, control for accounting purposes has a different test threshold than under a legal basis and as a result the Group’s SIP Trusts

are deemed to be under the control of Dr. Martens plc. The Trust deed for the Dr. Martens plc UK Share Incentive Plan Trust was adopted

by the Board on 10 September 2021.

2.25 SHARE-BASED PAYMENTS AND SHARE SCHEMES

The Group provides benefits to employees in the form of share-based payment transactions, whereby employees render services as

consideration in exchange for equity instruments (‘equity-settled transactions’).

The cost of equity-settled transactions is measured by reference to the fair value of the equity instruments at the date on which they are

granted and is recognised as an expense over the vesting period, which ends on the date the relevant employee becomes fully entitled

to the award. The fair value is calculated using an appropriate option pricing model and takes into account the impact of any market

performance conditions. The impact of non-market performance conditions is not considered in determining the fair value at the date

of grant. Vesting conditions which relate to non-market conditions are allowed for in the assumptions used for the number of options

expected to vest. The level of vesting is reviewed at each Balance Sheet date and the charge adjusted to reflect actual and estimated

levels of vesting. The cost of share-based payment transactions is recognised as an expense over the vesting period of the awards,

with a corresponding increase in equity. Further details of share-based awards granted in the year can be found in note 26.

A proportion of the annual Executive Bonus Scheme is settled in the form of purchased Parent Company shares. This is accounted for as

a cash-settled scheme as although participants received equity, it is driven by a cash amount that is paid and converted into shares at a

point in time. The proximity of the date of communication of the bonus to when the shares are received means that there would be minimal

difference between cash- and equity-settled treatment.

2.26 SIGNIFICANT JUDGEMENTS AND ESTIMATES

The preparation of the Group’s financial statements in conforming with IFRS requires management to make judgements, estimates and

assumptions that affect the application of policies and reported amounts in the financial statements. These judgements and estimates are

based on management’s best knowledge of the relevant facts and circumstances. However, the nature of estimation means that actual

outcomes could differ from those estimates. Information about such judgements and estimation is contained in the accounting policies

and/or notes to the financial statements and the key areas are summarised below:

174 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

2. Accounting policies continued

2.26 SIGNIFICANT JUDGEMENTS AND ESTIMATESCONTINUED

Key judgements

The following judgement has had the most significant effect on amounts recognised in the financial statements:

Defined benefit scheme surplus

The Group acknowledges that the recognition of pension scheme surplus is an area of accounting judgement, which depends on the

interpretation of the Scheme Rules and the relevant accounting standards including IAS 19 and IFRIC 14. The surplus under the scheme

is not recognised as an asset benefitting the Group on the Balance Sheet, as the Group believes there is uncertainty in relation to the

recoverability of any surplus, which is therefore unlikely to derive any economic benefits from that surplus. In the Group’s view there is

uncertainty over whether the Scheme Rules provide the Group with an unconditional right to a refund of the surplus from the scheme due

to third-party discretionary investment powers which could use up any surplus prior to wind-up. Consistent with previous years, given this

uncertainty, the Group has applied an asset ceiling to the pension scheme surplus of zero. As such, an asset ceiling has been applied to

the Balance Sheet, and the net surplus of £9.1m (FY23: £11.1m) has not been recognised on the Balance Sheet.

The net surplus has been capped to £nil (FY23: £nil). The key sensitivities of the defined benefit obligation to the actuarial assumptions

are shown in note 29.

Other areas of judgement and accounting estimates

The Consolidated Financial Statements include other areas of judgement and accounting estimates. While these areas do not meet the

definition under IAS 1 of significant accounting estimates or critical accounting judgements, the recognition and measurement of certain

material assets and liabilities are based on assumptions and/or are subject to longer-term uncertainties. The other areas of judgement

and accounting estimates are listed below:

Judgements

Determining the lease term of contracts with renewal and termination options – Group as lessee

The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend

the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not

to be exercised.

The Group has several lease contracts that include extension and termination options. The Group applies judgement in evaluating

whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant

factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Group

reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise

or not to exercise the option to renew or to terminate (e.g. construction of significant leasehold improvements or significant customisation

to the leased asset).

The Group included the renewal period as part of the lease term for leases of plant and machinery with shorter non-cancellable periods

(i.e. three to five years). The Group typically exercises its option to renew these leases because there will be a significant negative effect on

production if a replacement asset is not readily available. The renewal periods for leases of leasehold property with longer non-cancellable

periods (i.e. 10 to 15 years) are not included as part of the lease term, unless there is an economic incentive to extend the lease, as these

are not reasonably certain to be exercised. Furthermore, the periods covered by termination options are included as part of the lease term

only when they are reasonably certain not to be exercised.

Sources of estimation uncertainty and assumptions

The following estimates are dependent upon assumptions which could change in the next financial year and have an effect on the carrying

amount of assets and liabilities recognised at the Balance Sheet date:

Inventory net realisable value and provisions

The assessment of the valuation of inventory requires the determination of net realisable value. Sales prices, patterns and other

assumptions are reviewed to estimate net realisable value. Inventory provisioning requires significant judgement on which inventory lines

should be classed as obsolete. Inventory age, historic sales patterns and trading forecasts are used when classifying inventory lines to be

provided against.

Uncertain tax positions

The Group recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. Where the final tax

outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred

tax assets and liabilities in the period in which the determination is made. Management is required to determine the amount of deferred

tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with an assessment of the effect

of future tax planning strategies (see notes 8 and 22). In addition, the assessment of uncertain tax positions is based on management’s

interpretation of relevant tax rules and decided cases, external advice obtained, the statute of limitations, the status of the negotiations

and past experience with tax authorities. In evaluating whether a provision is needed it is assumed that tax authorities have full knowledge

of the facts and circumstances applicable to each issue.

FINANCIAL STATEMENTS

175DR. MARTENS PLC ANNUAL REPORT 2024

2. Accounting policies continued

2.26 SIGNIFICANT JUDGEMENTS AND ESTIMATES CONTINUED

Carrying value of non-financial assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when

annual impairment testing for an asset is required, the Group performs an impairment test and estimates the asset’s recoverable amount.

An asset’s recoverable amount is the higher of its fair value less costs of disposal and its value in use. An impairment is present if the

recoverable amount is less than the carrying value of the asset.

The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent

of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is

considered impaired and is written down to its recoverable amount. If assessing value in use, estimates of future cash flows are discounted to

present value using pre-tax discount rates derived from risk-free rates based on long-term government bonds, adjusted for risk factors such as

region and market risk in the territories in which the Group operates and the time value of money. The future cash flows are then extended into

perpetuity using long-term growth rates. If determining fair value less costs of disposal, recent market transactions are considered. If no such

transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted

share prices for publicly traded companies or other available fair value indicators.

For details of relevant non-financial assets, see notes 11 and 12.

Defined benefit pension scheme assumption

Determining the fair value of the defined benefit pension scheme, which relates to the pension of the Group, requires assumptions to be

made by management and the Group’s independent qualified actuary around the actuarial valuations of the scheme’s assets and liabilities.

For details see note 29.

Leases – estimating the incremental borrowing rate

The Group cannot readily determine the interest rate implicit in the lease; therefore, it uses its incremental borrowing rate (IBR) to measure

lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the

funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects

what the Group ‘would have to pay’, which requires estimation when no observable rates are available (such as for subsidiaries that do

not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when

leases are not in the subsidiary’s functional currency). The Group estimates the IBR using observable inputs (such as market interest

rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating). The IBR

is reassessed when there is a reassessment of the lease liability or a lease modification.

3. Segmental analysis

	FY24	FY23
	£m	£m
Revenue by geographical market
EMEA	431.8	443.0
Americas	325.8	428.2
APAC	119.5	129.1
Total revenue	877.1	1,000.3

1. Revenue by geographical market represents revenue from external customers; there is no inter-segment revenue.

	FY24	FY23
	£m	£m
EBITDA 2 by geographical market
EMEA	140.8	146.1
Americas	64.4	100.1
APAC	31.7	33.8
Support costs	(39.4)	(35.0)
EBITDA	197.5	245.0
Depreciation, amortisation and impairment	(21.0)	(22.6)
Depreciation and impairment of right-of-use assets	(51.3)	(35.5)
Foreign exchange losses	(4.2)	(10.7)
Other gains	1.2	–
Depreciation, amortisation, impairment, foreign exchange losses and other gains	(75.3)	(68.8)
Finance income and expense	(29.2)	(16.8)
Profit before tax	93.0	159.4

2. Alternative Performance Measure ‘APM’ as defined in the Glossary on pages 220 and 221 .

176 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

3. Segmental analysis continued

ADDITIONAL REVENUE ANALYSIS

The Group derives its revenue in geographical markets from the following sources:

	FY24	FY23
	£m	£m
Revenue by channel
Ecommerce	276.3	279.0
Retail	256.8	241.7
Total DTC revenue	533.1	520.7
Wholesale	344.0	479.6
Total revenue	877.1	1,000.3

	FY24	FY23
	£m	£m
Non-current assets
EMEA	153.4	143.3
Americas	92.2	72.6
APAC	17.7	15.4
Goodwill	240.7	240.7
Deferred tax	11.2	11.8
Total non-current assets	515.2	483.8

1. Included in the EMEA non-current assets is £83.9m (FY23: £79.4m) in relation to the UK legal entities.

4. Expenses analysis

Profit before tax is stated after charging and crediting:

Note

		FY24	FY23
		£m	£m
Selling and administrative expenses
Staff costs	6	155.8	143.8
Operating costs		221.9	229.3
		377.7	373.1
Amortisation	11	5.8	8.4
Depreciation	12	15.2	13.6
Depreciation of right-of-use assets	12	51.3	32.2
Impairment	12	–	0.6
Impairment of right-of-use assets	12	–	3.3
Foreign exchange losses		4.2	10.7
Other gains		(1.2)	–
Depreciation, amortisation, impairment, foreign exchange losses and other gains		75.3	68.8
Total selling and administrative expenses		453.0	441.9

5. Auditors’ remuneration

	FY24	FY23
	£m	£m
Audit services in respect of the financial statements of the Parent Company and consolidation	0.8	0.6
Audit services in respect of the financial statements and of the financial statements of subsidiary companies	1.5	1.1
Other non-audit related services	0.2	0.1
	2.5	1.8

1. FY23 auditor’s remuneration of £2.1m disclosed in the Audit and Risk Committee Report on page 141 is different to this as it includes additional fees relating to the FY23

audit which were agreed and have been incurred as an accounting expense in FY24.

FINANCIAL STATEMENTS

177DR. MARTENS PLC ANNUAL REPORT 2024

6. Staff costs

The aggregate payroll costs were as follows:

	FY24	FY23
	£m	£m
Wages and salaries	126.7	1 17.5
Social security costs	14.2	13.4
Pension costs	5.4	4.7
Other benefits	9.5	8.2
	155.8	143.8

1. Includes share-based payments of £4.0m (FY23: £0.5m).

For details of remuneration relating to Directors, please refer to the Directors’ Remuneration Report on pages 119 to 133 of the

Annual Report.

The monthly number of employees (including Directors) employed by the Group during the year was:

	FTE			Average
	As at 31 March			For the year ended 31 March
	2024	2023	2024	2023
	No.	No.	No.	No.
EMEA	1,044	951	1,853	1,615
Americas	599	580	819	768
APAC	385	468	553	484
Global support functions	602	592	600	594
	2,630	2,591	3,825	3,461

1. FTE (Full Time Equivalent) is calculated by dividing the employee’s contracted hours by the Group’s standard full time contract hours.

2. Average is the average actual employees of the Group during the year calculated on a monthly basis.

7. Finance expense

	FY24	FY23
	£m	£m
Bank debt and other charges	22.3	12.7
Interest on lease liabilities	8.6	4.8
Amortisation of bank loan issue costs	1.2	1.2
Other interest charges	0.1	–
Total financing expense	32.2	18.7

178 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

8. Tax expense

The Group calculates the tax expense for the year using the tax rate that would be applicable to the expected total annual earnings.

The major components of tax expense in the Consolidated Statement of Profit or Loss are:

	FY24	FY23
	£m	£m
Current tax
Current tax on UK profit for the year	17.2	28.1
Adjustment in respect of prior years	(0.6)	(1.7)
Current tax on overseas profits for the year	6.4	4.3
	23.0	30.7
Deferred tax
Origination and reversal of temporary differences	(0.8)	(1.0)
Adjustment in respect of prior years	1.6	0.8
	0.8	(0.2)
Total tax expense in the Consolidated Statement of Profit or Loss	23.8	30.5
Other Comprehensive Income
Tax in relation to unexercised share options	(0.5)	–
Tax in relation to cash flow hedges	0.7	(0.2)
Total tax expense in the Consolidated Statement of Comprehensive Income	24.0	30.3

	FY24	FY23
	£m	£m
Factors affecting the tax expense for the year:
Profit before tax	93.0	159.4
Profit before tax multiplied by standard rate of UK corporation tax of 25% (FY23: 19%)	23.3	30.3
Effects of:
Non-deductible expenses	0.2	0.2
Effect of change in UK tax rate	–	0.1
Share-based payments	0.3	0.1
Difference in foreign tax rates	(0.8)	0.8
Other adjustments	(0.2)	(0.1)
Adjustments in respect of prior years	1.0	(0.9)
Total tax expense in the Consolidated Statement of Profit or Loss	23.8	30.5
Other Comprehensive Income
Tax in relation to unexercised share options	(0.5)	–
Tax in relation to cash flow hedges	0.7	(0.2)
Total tax expense in the Consolidated Statement of Comprehensive Income	24.0	30.3
Effective tax rate	25.6%	19.1%

1. The adjustments in respect of the prior years are in relation to current and deferred tax on temporary differences.

FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

On 20 June 2023, Finance (No.2) Act 2023 was substantively enacted in the UK, introducing a global minimum effective tax rate of 15%

for large groups for financial years beginning on or after 31 December 2023.

Based on an initial analysis, all territories in which the Group operates are expected to qualify for one of the safe harbour exemptions such

that top-up taxes should not apply. To the extent that this is not the case there is the potential for Pillar Two taxes to apply, but these are not

expected to be material .

FINANCIAL STATEMENTS

179DR. MARTENS PLC ANNUAL REPORT 2024

9. Earnings per share

The calculation of basic earnings per share is based on the profit attributable to ordinary shareholders of the Parent Company divided by

the weighted average number of ordinary shares in issue during the year.

Diluted earnings per share is calculated by dividing the profit for the year attributable to ordinary equity holders of the Parent Company by

the weighted average number of ordinary shares in issue during the year plus the weighted average number of ordinary shares that would

be issued on the conversion of all dilutive potential ordinary shares into ordinary shares.

	FY24	FY23
	£m	£m
Profit after tax	69.2	128.9

	FY24	FY23
	No.	No.
Weighted average number of shares for calculating basic earnings per share (millions)	983.5	1,000.5
Potentially dilutive share awards (millions)	2.1	0.7
Weighted average number of shares for calculating diluted earnings per share (millions)	985.6	1,001.2

	FY24	FY23
Earnings per share
Basic earnings per share	7.0p	12.9p
Diluted earnings per share	7.0p	12.9p

During the year to 31 March 2024 the Group repurchased 39.9 million shares. The cash outflow was £50.5m (including transaction costs

of £0.5m) pursuant to the share buyback scheme that was announced on 14 July 2023 and concluded on 19 December 2023.

10. Dividends

	FY24	FY23
	£m	£m
Equity dividends on ordinary shares declared and paid during the year
Final dividend paid for FY23: 4.28p (FY22: 4.28p)	42.8	42.8
Interim dividend for FY24: 1.56p (FY23: 1.56p)	15.0	15.6
Total dividends declared and paid during the year	57.8	58.4
Proposed for approval by shareholders at the AGM
(not recognised as a liability at 31 March 2024 or 31 March 2023)
Final dividend for FY24: 0.99p (FY23: 4. 28p)	9.5	42 .8
Total interim dividend paid and final dividend proposed	24.5	58.4
Dividend as a % of earnings	35%	45%
Dividend per share
Total dividend per share (pence)	2.55p	5.84p

The Board has proposed, subject to shareholder approval, a final dividend of 0.99p (FY23: 4.28p), taking the total dividend for FY24, including

the interim dividend of 1.56p, to 2.55p, a 35% payout ratio. Whilst this is a year-on-year reduction given the higher payout in FY23 and lower

earnings achieved this year, the 35% payout for FY24 is at the top of the policy range. The Board’s intention is to hold the FY25 dividend flat

in absolute terms, before returning to an earnings payout in line with our dividend policy (of 25% to 35% payout) in FY26 onwards.

Going forwards, the Board is also adopting a consistent approach to setting the interim dividend, with this dividend set at one-third of the

previous year’s total dividend. We are also adjusting the payment dates for the dividends, to better reflect the trading cash profile of the

Group, and therefore the final dividend will be paid in early October. The final dividend for FY24 will be paid to shareholders on the register

as at 30 August 2024 with payment on 1 October 2024.

180 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

11. Intangible assets

	Software	Other
	intangibles	intangibles	Goodwill	Total
	£m	£m	£m	£m
Cost
At 1 April 2022	38.8	1.2	240.7	280.7
Additions	11.8	–	–	11.8
Disposals	(2.5)	–	–	(2.5)
Reclassifications to right-of-use assets	(0.2)	–	–	(0.2)
Reclassifications to property, plant and equipment	(0.1)	–	–	(0.1)
Foreign exchange	0.4	–	–	0.4
At 31 March 2023	48.2	1.2	240.7	290.1
Additions	10.2	–	–	10.2
Disposals	(1.0)	–	–	(1.0)
Foreign exchange	(0.1)	–	–	(0.1)
At 31 March 2024	57.3	1.2	240.7	299.2
Accumulated amortisation and impairment
At 1 April 2022	18.6	–	–	18.6
Charge for the year	8.4	–	–	8.4
Disposals	(2.4)	–	–	(2.4)
Foreign exchange	(0.1)	–	–	(0.1)
At 31 March 2023	24.5	–	–	24.5
Charge for the year	5.7	0.1	–	5.8
Disposals	(1.0)	–	–	(1.0)
Foreign exchange	(0.2)	0.1	–	(0.1)
At 31 March 2024	29.0	0.2	–	29.2
Net book value
At 31 March 2024	28.3	1.0	240.7	270.0
At 31 March 2023	23.7	1.2	240.7	265.6

1. Software intangible additions in the year of £10.2m (FY23: £11.8m) include permanent employee staff costs capitalised of £0.8m (FY23: £0.6m).

2. Relates to a reclassification of assets to right-of-use assets in relation to key money.

GOODWILL IMPAIRMENT ASSESSMENT

Goodwill is required to be tested for impairment on an annual basis by estimating the asset’s recoverable amount. An asset’s recoverable

amount is the higher of its fair value less costs of disposal and its value in use. An impairment is present if the recoverable amount is less

than the carrying value of the asset. The recoverable amount is estimated for goodwill with reference to the cash generating units (CGUs)

to which goodwill was originally allocated and each of these CGUs has been separately assessed and tested. The CGUs were agreed by

the Directors as the geographical regions in which the Group operates. These regions are the lowest level at which goodwill is monitored

and represent identifiable operating segments. There have been no changes to the composition of the Group’s CGUs during the period.

The aggregate carrying amount of goodwill allocated to each CGU was as follows:

	FY24	FY23
	£m	£m
EMEA	66.6	66.6
Americas	114.1	114.1
APAC	60.0	60.0
	240.7	240.7

All CGUs were tested for impairment. No impairment charge was made in the current year (FY23: £nil).

FINANCIAL STATEMENTS

181DR. MARTENS PLC ANNUAL REPORT 2024

11. Intangible assets continued

Judgements, assumptions and estimates

The results of the Company’s impairment tests are dependent upon estimates and judgements made by management. All CGUs’

recoverable amounts are measured using a value in use calculation. The value in use calculation uses cash flow forecasts based on financial

projections reviewed by the Board covering a five-year period (pre-perpetuity). The forecasts are based on annual budgets and strategic

projections representing the best estimate of future performance. Management considers forecasting over this period to appropriately reflect

the business cycle of the CGUs. These cash flows are consistent with those used to review going concern and viability, however, are required

by IAS 36 to be adjusted for use within an impairment review to exclude new retail development to which the Group is not yet committed.

In determining the value in use of CGUs it is necessary to make a series of assumptions to estimate the present value of future cash flows.

The following key assumptions have been made by management reflecting past experience and are consistent with relevant external

sources of information.

Operating cash flows

The main assumptions within the forecast operating cash flows include the achievement of future growth in ecommerce, retail and

wholesale channels, sales prices and volumes (including reference to specific customer relationships and product lines), raw material

input costs, the cost structure of each CGU, the impact of foreign currency rates upon selling price and cost relationships and the levels

of capital expenditure required to support each sales channel.

Pre-tax risk adjusted discount rates

Future cash flows are discounted to present value using pre-tax discount rates derived from risk-free rates based on long-term government

bonds, adjusted for risk factors such as region and market risk in the territories in which the Group operates and the time value of money.

Consistent with the 2019 IFRS IASB Staff Paper, post-tax discount rates and post-tax cash flows are used as observable inputs, and then

the pre-tax discount rates are calculated from this to comply with the disclosure requirements under IAS 36.

The pre-tax risk adjusted discount rates have been calculated to be 12.7% for EMEA (FY23: 12.3%), 12.6% for Americas (FY23: 12.5%),

and 12.4% for APAC (FY23: 11.6%).

Long-term growth rates

To forecast beyond the five-year detailed cash flows into perpetuity, a long-term average growth rate has been used. The long-term growth

rates applied for the regions are 1.9% for EMEA (FY23: 1.9%), 2.2% for Americas (FY23: 2.2%), and 3.4% for APAC (FY23: 3.5%).

The rates used are in line with geographical forecasts included within industry reports.

Sensitivity analysis

Sensitivity analysis to potential changes in these key assumptions has been reviewed and there are no reasonably possible changes

to key assumptions that would cause the carrying amount for any CGU to exceed its recoverable amount.

182 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

12. Property, plant and equipment

			Plant,
	Freehold		machinery,	Office and
	property and	Leasehold	fixtures and	computer
	improvements	improvements	fittings	equipment	Motor vehicles	Total
	£m	£m	£m	£m	£m	£m
Cost
At 1 April 2022	6.5	60.0	4.6	8.3	0.1	79.5
Additions	1.0	19.9	12.7	2.8	–	36.4
Disposals	–	(5.0)	(0.9)	(2.4)	(0.1)	(8.4)
Reclassifications from intangible fixed assets	–	0.1	–	–	–	0.1
Foreign exchange	0.5	1.3	(0.2)	–	–	1.6
At 31 March 2023	8.0	76.3	16.2	8.7	–	109.2
Additions	0.1	14.7	0.1	1.3	–	16.2
Disposals	(0.1)	(3.9)	–	(1.3)	–	(5.3)
Reclassifications to right-of-use assets	–	(3.3)	–	–	–	(3.3)
Foreign exchange	(0.2)	(1.8)	(0.3)	(0.2)	–	(2.5)
At 31 March 2024	7. 8	82.0	16.0	8.5	–	114.3
Accumulated depreciation and impairment
At 1 April 2022	0.4	31.9	3.2	5.6	0.1	41.2
Charge for the year	0.3	10.3	1.0	2.0	–	13.6
Impairment	–	0.5	–	0.1	–	0.6
Eliminated on disposal	–	(5.0)	(0.9)	(2.4)	(0.1)	(8.4)
Foreign exchange	(0.1)	1.0	0.1	(0.1)	–	0.9
At 31 March 2023	0.6	38.7	3.4	5.2	–	47.9
Charge for the year	0.3	11.9	0.8	2.2	–	15.2
Impairment	–	–	–	–	–	–
Eliminated on disposal	(0.1)	(3.9)	–	(1.3)	–	(5.3)
Reclassifications to right-of-use assets	–	(1.6)	–	–	–	(1.6)
Foreign exchange	–	(1.2)	–	(0.1)	–	(1.3)
At 31 March 2024	0.8	43.9	4.2	6.0	–	54.9
Net book value
At 31 March 2024	7.0	38.1	11.8	2.5	–	59.4
At 31 March 2023	7.4	37.6	12.8	3.5	–	61.3

FINANCIAL STATEMENTS

183DR. MARTENS PLC ANNUAL REPORT 2024

12. Property, plant and equipmentcontinued

Set out below are the carrying amounts of right-of-use assets recognised and the movements during the year:

	Right-of-use
	assets
	£m
Cost or valuation
At 1 April 2022	159.5
Additions	66.3
Reassessments of leases	5.5
Reclassifications from intangible fixed assets	0.2
Disposals	(0.8)
Foreign exchange	4.7
At 31 March 2023	235.4
Additions	77.0
Reassessments of leases	(4.0)
Reclassifications from property, plant and equipment	3.3
Modifications of leases	10.1
Disposals	(10.1)
Foreign exchange	(8.8)
At 31 March 2024	302.9
Accumulated depreciation and impairment
At 1 April 2022	54.0
Charge for the year	32.2
Impairment	3.3
Foreign exchange	1.8
At 31 March 2023	91.3
Charge for the year	51.3
Reclassifications from property, plant and equipment	1.6
Disposals	(10.0)
Foreign exchange	(4.8)
At 31 March 2024	129.4
Net book value
At 31 March 2024	173.5
At 31 March 2023	144.1

1. Additions include £2.0m of direct costs (FY23: £3.2m) and £2.5m (FY23: £2.7m) in relation to costs of removal and restoring.

2. Lease reassessments relate to measurement adjustments for rent reviews and stores that have exercised lease breaks.

3. During FY23, impairment charged was mainly in relation to three stores in the USA where footfall recovery, in their locality, was weak, and they were written down to £nil.

IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT AND RIGHT-OF-USE ASSETS

The Group has determined that each retail store is a separate CGU. Each CGU is assessed for indicators of impairment at the Balance

Sheet date and tested for impairment if any indicators exist. The Group has some leases that meet the IAS 36 definition of corporate assets,

such as offices, as they do not generate independent cash flows. These are assessed for impairment indicators and if required to be tested

for impairment, are done so using the two-step impairment process under IAS 36 in which they are allocated to the Regional-level CGUs as

determined for goodwill impairment (note 11). There has been no change to the way in which CGUs are determined in the period.

Judgements, assumptions and estimates – retail stores

The results of the Company’s impairment tests are dependent upon estimates and judgements made by management. If an indicator of

impairment has been identified, a CGU’s recoverable amount is measured using the value in use method. The value in use calculation

uses cash flow forecasts based on financial projections reviewed by the Board covering a five-year period. The forecasts are based on

annual budgets and strategic projections representing the best estimate of future performance. Management considers forecasting over

this period to appropriately reflect the business cycle of the CGUs. These cash flows are consistent with those used to review going

concern and viability, however, are adjusted for relevance to the nature and tenure of the retail store lease.

If determining the value in use of CGUs it is necessary to make a series of assumptions to estimate the present value of future cash flows

which reflect past experience and are consistent with relevant external sources of information.

184 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

12. Property, plant and equipmentcontinued

Operating cash flows – retail stores

If an indicator of impairment has been identified and a CGU’s recoverable amount is required to be estimated, the main assumptions

within the forecast operating cash flows include the achievement of future growth in retail sales, sales prices and volumes, raw material

input costs, the cost structure of each CGU, the impact of foreign currency rates upon selling price and cost relationships and the levels

of capital expenditure required to support the associated sales.

Pre-tax risk adjusted discount rates – retail stores

If an indicator of impairment has been identified and a CGU’s recoverable amount is required to be estimated future cash flows are discounted

to present value using a pre-tax discount rate derived from risk-free rates based on long-term government bonds, adjusted for risk factors such

as region and market risk in the territories in which the Group operates and the time value of money. Consistent with the 2019 IFRS IASB Staff

Paper, a post-tax discount rate and post-tax cash flows are used as observable inputs, and then the pre-tax discount rate is calculated from this to

comply with the disclosure requirements under IAS 36. The pre-tax discount rate for the Group has been calculated to be 12.7% (FY23: 12.3%).

Sensitivity analysis – retail stores

If an indicator of impairment has been identified and a CGU’s recoverable amount is required to be estimated, the results of the Group’s

impairment tests are dependent upon estimates and judgements made by management. No indicators of impairment were identified in FY24 and

therefore no recoverable amount was estimated (FY23: sensitivity analysis to potential changes in key assumptions were reviewed and there were

no reasonably possible changes to key assumptions that would have caused the carrying amount of any CGU to exceed its recoverable amount).

13. Inventories

	FY24	FY23
	£m	£m
Raw materials	2.2	2.3
Finished goods	252.4	255.5
Inventories net of provisions	254.6	25 7. 8

	FY24	FY23
	£m	£m
Inventory provision	2.6	2.7
Inventory written off to Consolidated Statement of Profit or Loss	0.9	0.8

The cost of inventories recognised as an expense and included in cost of sales amounted to £284.3m (FY23: £348.8m). The remainder

of total cost of sales of £301.9m (FY23: £382.2m) relates to freight including shipping out costs.

14. Trade and other receivables

	FY24	FY23
	£m	£m
Trade receivables	55.1	80.6
Less: allowance for expected credit losses	(0.8)	(1.8)
Trade receivables – net	54.3	78.8
Other receivables	7.7	7.5
	62.0	86.3
Prepayments	6.8	6.7
	68.8	93.0

All trade and other receivables are expected to be recovered within 12 months of the year-end date. Due to the short-term nature of

the current receivables, their carrying amount is considered to be the same as their fair value. The carrying value of trade receivables

represents the maximum exposure to credit risk. For some trade receivables the Group may obtain security in the form of guarantees,

insurances or letters of credit which can be called upon if the counterparty is in default under the terms. As at 31 March 2024 the amount

of collateral held was £0.3m (FY23: £0.3m).

As at 31 March 2024 trade receivables of £1.9m (FY23: £4.5m) were due over 90 days, trade receivables of £0.7m (FY23: £1.4m) were

due between 60-90 days and trade receivables of £52.5m (FY23: £75.0m) were due in less than 60 days. The Group establishes a loss

allowance that represents its estimate of potential losses in respect of trade receivables, where it is deemed that a receivable may not be

recovered, and considers factors which may impact risk of default.

Where appropriate, we have grouped these receivables with the same overall risk characteristics. When the receivable is deemed

irrecoverable, the provision is written off against the underlying receivables.

The Group applies the IFRS 9 simplified approach to measuring expected credit losses (bad debt provision) which uses a lifetime

expected loss allowance for all trade receivables. 

FINANCIAL STATEMENTS

185DR. MARTENS PLC ANNUAL REPORT 2024

14. Trade and other receivablescontinued

To measure expected credit losses (bad debt provision), trade receivables have been grouped based on customer segment, geographical

location, and the days past due. The expected loss rates are based on the historical credit losses experienced in previous periods. The

rates are adjusted to reflect current and forward-looking information, including macroeconomic factors, by obtaining and reviewing relevant

market data affecting the ability of customers to settle the receivables based on their customer segment and geographical location.

Where objective evidence exists that a trade receivable balance may be impaired, provision is made for the difference between its carrying

amount and the present value of the estimated cash that will be recovered. Evidence of impairment may include such factors as a

customer entering insolvent administration proceedings.

As at 31 March 2024 trade receivables were carried net of expected credit losses (bad debt provision) of £0.8m (FY23: £1.8m). The individually

impaired receivables relate mainly to accounts which are outside the normal credit terms. The ageing analysis of these provisions against trade

receivables is as follows:

	FY24	FY23
	£m	£m
Up to 60 days	0.1	0.4
60 to 90 days	–	0.1
Over 90 days	0.7	1.3
	0.8	1.8

	FY24	FY23
	£m	£m
At 1 April	1.8	0.7
Change in provision for expected credit losses	(1.0)	1.1
At 31 March	0.8	1.8
Debtors days	52	52

The carrying amount of the Group’s trade and other receivables is denominated in the following currencies:

	FY24	FY23
	£m	£m
UK Sterling	4.9	4.1
Euro	13.1	28.0
US Dollar	27.4	43.7
Japanese Yen	2.5	1.5
Other currencies	6.4	1.5
	54.3	78.8

15. Cash and cash equivalents

	FY24	FY23
	£m	£m
Cash and cash equivalents	111.1	157.5

186 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

16. Trade and other payables

	FY24	FY23
	£m	£m
Trade payables	33.0	64.2
Taxes and social security costs	12.2	10.2
Other payables	7.6	5.6
	52.8	80.0
Accruals	39.4	47.7
	92.2	1 2 7.7

1. Included within accruals is the refund liability of £3.9m (FY23: £4.5m) and deferred income of £2.5m (FY23: £1.8m). The balance of £33.0m (FY23: £41.4m) consists

of accruals for royalties, goods received not invoiced and other accruals.

All trade and other payables are expected to be settled within 12 months of the year-end date. Due to the short-term nature of the current

payables, their carrying amount is considered to be the same as their fair value. At 31 March 2024, other payables included £6.3m (FY23:

£5.6m) in relation to employment related payables, mainly the holiday pay accrual.

17. Borrowings

Note

		FY24	FY23
		£m	£m
Current
Bank interest		8.4	6.0
Lease liabilities	28	47.0	28.1
Total current		55.4	34.1
Non-current
Bank loans (netofunamortised bank fees)		286.3	293.4
Lease liabilities	28	135.3	124.3
Total non-current		421.6	417.7
Total borrowings		47 7.0	451.8
Analysis of bank loan:
Non-current bank loans (netofunamortised bank fees)		286.3	293.4
Add back unamortised fees		2.3	3.4
Total gross bank loan		288.6	296.8

1. From total borrowings, only bank loans (excluding unamortised bank fees) and lease liabilities are included in debt for bank loan covenant calculation purposes.

On 29 January 2021, the Group entered into a New Facilities Agreement, comprising a new Term Loan B facility of €337.5m (equivalent

to £300.0m at that date) and a new multi-currency revolving credit facility of £200.0m. These facilities have a maturity date of 2 February

2026. Included within this agreement is a committed ancillary facility of which £3.4m (FY23: £3.7m) has been utilised primarily related to

landlord bank guarantees.

During the year the Group drew down £30.0m (FY23: £nil) of debt under the revolving credit facility to support short-term working capital

requirements, and this was fully repaid during the year on 30 November 2023.

The Group value of the bank loan as at 31 March 2024 (excluding unamortised bank fees and accrued interest) of £288.6m (FY23: £296.8m)

is £11.4m lower (FY23: £3.2m lower) than the amount borrowed on 29 January 2021 due to an appreciation of the GBP/Euro foreign

exchange rate movement. The Group’s total gross bank loan is denominated in Euros and loan repayments will occur in February 2026.

The Group’s total gross bank loan is denominated in the following currencies:

	FY24	FY23
	£m	£m
Euro Term Loan B	288.6	296.8
Total bank loan	288.6	296.8

1. Euro denominated amount €337.5m (FY23: €337.5m).

FINANCIAL STATEMENTS

187DR. MARTENS PLC ANNUAL REPORT 2024

17. Borrowingscontinued

Loan repayments will occur as follows:

			Term Loan B (Euro)
			£m
Year to 31 March
20	26 (2 Febr	uary 2026) (€337.5m)	288.6
Total			288.6

Interest of the Euro Term Loan B is charged with a variable margin depending on the Group leverage over floating EURIBOR. The weighted

total interest rate for this instrument in the year was 6.6% (FY23: 3.57%).

IMPLEMENTATION OF ALTERNATIVE BENCHMARK INTEREST RATES

Following the cessation of several ‘Inter Bank Offer Rates’ (IBORs) the Group has continued to transition to using alternative benchmark

interest rates where appropriate, with the overall impact assessed as being immaterial.

The Group’s existing £200m multi-currency revolving credit facility was transitioned to allow the continued drawing of GBP and JPY

as currencies fixing against Risk Free Rates (SONIA and TONIA respectively) from LIBOR.

The Group’s €337.5m Euro Term Loan B currently fixes against floating EURIBOR where, following a methodology reform of this

benchmark by the European Money Markets Institute (EMMI) in 2019, no indication has been given that it is likely to cease in the near

future. The Group assesses there to be no other material impact as part of the reform and has no interest rate hedge accounting

relationships as at 31 March 2024.

BANK LOANS

	FY24	FY23
	£m	£m
Revolving credit facility utilisation
Guarantees	3.4	3.7
Total utilised facility	3.4	3.7
Available facility (unutilised)	196.6	196.3
Total revolving facility	200.0	200.0
	%	%
Interest rate charged on unutilised facility	0.90	0.83

The bank loans are secured by a fixed and floating charge over all assets of the Group.

On 29 January 2021, the Group entered into a £200.0m multi-currency revolving credit facility available until 2 February 2026.

FAIR VALUE MEASUREMENT

The fair value of the items classified as loans and borrowings is shown above. The book and fair values of borrowings are deemed to be

materially equal.

Movements in bank loans (excluding the accrual and payment of interest) were as follows:

			Cash flows	Foreign
			Repayment of	exchange	31 March
	1 April 2023	New loans	capital	movement	2024
	£m	£m	£m	£m	£m
Euro Term Loan B	296.8	–	–	(8.2)	288.6
Total borrowings	296.8	–	–	(8.2)	288.6

			Cash flows	Foreign
			Repayment of	exchange	31 March
	1 April 2022	New loans	capital	movement	2023
	£m	£m	£m	£m	£m
Euro Term Loan B	285.6	–	–	11.2	296.8
Total borrowings	285.6	–	–	11.2	296.8

188 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

17. Borrowingscontinued

NET DEBT

RECONCILIATION

The breakdown of net debt

was as follows:

	FY24	FY23
	£m	£m
Cash and cash equivalents	111.1	157.5
Bank loans (netofunamortised bank fees)	(286.3)	(293.4)
Lease liabilities	(182.3)	(152.4)
Net debt	(3 57.5)	(288.3)

1. Alternative Performance Measure ‘APM’ as defined in the Glossary on pages 220 and 221 .

18. Provisions

	Property
	provisions	Total
	£m	£m
At 1 April 2022	1.9	1.9
Arising during the year	2.7	2.7
Amounts utilised	(0.2)	(0.2)
At 31 March 2023	4.4	4.4
Arising during the year	2.5	2.5
Amounts utilised	(0.4)	(0.4)
Foreign exchange	(0.2)	(0.2)
At 31 March 2024	6.3	6.3

Property provisions relate to the estimated repair and restoration costs for retail stores at the end of the lease. The provisions are not

discounted for the time value of money as this is not considered materially different from the current cost.

19. Derivative assets and liabilities

	FY24	FY23
	£m	£m
Assets
Foreign exchange forward contracts – Current	1.5	0.5
Foreign exchange forward contracts – Non-current	0.1	–
Liabilities
Foreign exchange forward contracts – Current	(0.1)	(1.3)
Foreign exchange forward contracts – Non-current	–	–

Derivative financial instruments consist of foreign exchange forward contracts, which are categorised within Level 2 (refer to note 2.16 for

details on fair value hierarchy categorisation). The full fair value of a derivative is classified as a non-current asset or liability if the remaining

maturity is more than 12 months and as a current asset or liability if the maturity of the derivative is less than 12 months.

Foreign exchange forward derivatives

The Group takes a holistic approach to foreign exchange risk, viewing exposures on Group wide net cash flow basis, seeking to maximise

natural offsets wherever possible. Where considered material the Group manages its exposure to variability in GBP from foreign exchange

by hedging highly probable future cash flows arising in other currencies. The Group’s principal net currency exposures are to EUR, CAD,

JPY and USD.

FINANCIAL STATEMENTS

189DR. MARTENS PLC ANNUAL REPORT 2024

19. Derivative assets and liabilities continued

The Group adopts a rolling, layered approach to hedging its operating cash flows using forward foreign exchange contracts on an

18-month horizon. Other derivative contracts and longer tenors may be used provided these are approved by the Board and Audit and

Risk Committee. The Group also utilises foreign exchange derivatives in a hedging relationship to partially hedge the foreign exchange

translation risk (into functional GBP) on its term loan.

The following table represents the nominal amounts and types of derivatives held as at each Balance Sheet date:

	FY24	FY23
Average foreign exchange rate
Cash flow hedges: sell GBP buy EUR	1.1539	1.1225
Cash flow hedges: sell EUR buy GBP	1.1366	1.1381
Derivatives measured at fair value through profit or loss: sell EUR buy GBP	1.1448	–
Nominal amounts
Cash flow hedges: sell GBP buy EUR	€m	€m
Less than a year	130.0	136.3
More than a year but less than two years	–	–
Cash flow hedges: sell EUR buy GBP	£m	£m
Less than a year	66.5	76.0
More than a year but less than two years	2.1	5.8
Derivatives measured at fair value through profit or loss: sell EUR buy GBP	£m	£m
Less than a year	1.9	–
More than a year but less than two years	–	–

For hedges of forecast receipts and payments in foreign currencies, the critical terms of the hedging instruments match exactly with the

terms of the hedged items and, therefore, the Group performs a qualitative assessment of effectiveness. The fair value of forecast hedge

items are assessed to move materially equally and opposite to continuing cash flow hedge instruments. Ineffectiveness may arise if the

timing of the forecast transaction changes from what was originally estimated or if there are changes in the credit risk of the Group or the

derivative counterparty. The hedge ratio is 1:1.

If a hedged item is no longer expected to occur, the hedge instruments are immediately de-designated from a cashflow hedge relationship.

Amounts recognised in relation to de-designated derivatives are released from the hedging reserve and thereafter movements are

classified as fair value through profit or loss. Amounts de-designated during the year ended 31 March 2024 were not material.

(Losses)/gains reclassified from the Consolidated Statement of Comprehensive Income to the Consolidated Statement of Profit or Loss

during the period are as follows:

	FY24	FY23
	£m	£m
Revenue	1.5	(1.5)
Foreign exchange (losses)/gains	(5.4)	4.0
	(3.9)	2.5

Derivative financial assets and liabilities are subject to offsetting, enforceable master netting arrangements with counterparties.

However, these amounts are presented gross on the face of the Balance Sheet as the conditions for netting specified in IAS 32

‘Financial Instruments Presentation’ are not met.

		FY24
		Gross carrying Amounts not
	amounts	offset	Net amounts
	£m	£m	£m
Derivative financial assets	1.6	(0.1)	1.5
Derivative financial liabilities	(0.1)	0.1	–

190 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

19. Derivative assets and liabilities continued

		FY23
	Gross carrying	Amounts not
	amounts	offset	Net amounts
	£m	£m	£m
Derivative financial assets	0.5	(0.4)	0.1
Derivative financial liabilities	(1.3)	0.4	(0.9)

20. Investments

	FY24	FY23
	£m	£m
Investments	1.0	1.0

On 16 January 2023 the Group made an investment of £1.0m in the share capital of Generation Phoenix Ltd (GP), a company that

specialises in producing a sustainable alternative to leather and produces a recycled leather product using part processed offcuts.

21. Financial instruments

IFRS 13 requires the classification of financial instruments measured at fair value to be determined by reference to the source of inputs

used to derive fair value. The fair values of all financial instruments, except for leases, in both years are materially equal to their carrying

values. All financial instruments are measured at amortised cost with the exception of derivatives, cash amounts held within Money Market

Funds, and investments in equity instruments which are measured at fair value. Derivatives and Money Market Funds are classified as

Level 2 under the fair value hierarchy, and investments in equity instruments as Level 3, which is consistent with that defined in note 2.16

of the Consolidated Financial Statements for the year ended 31 March 2024.

		31 March 2024
		Fair value
	Assets at	through other	Fair value
	amortised	comprehensive	through
	cost	income	profit or loss	Total
	£m	£m	£m	£m
Assets as per Balance Sheet
Investments	–	1.0	–	1.0
Trade and other receivables excluding prepayments and accrued income	62.0	–	–	62.0
Derivative financial assets – Current	–	1.5	–	1.5
Derivative financial assets – Non-current	–	0.1	–	0.1
Cash and cash equivalents	52.2	–	58.9	111.1
	114.2	2.6	58.9	175.7

1. A proportion of our cash is invested in high-quality overnight money market funds to mitigate concentration and counterparty risk.

		Fair value
	Liabilities at	through other	Fair value
	amortised	comprehensive	through
	cost	income	profit or loss	Total
	£m	£m	£m	£m
Liabilities as per Balance Sheet
Bank debt	288.6	–	–	288.6
Bank interest – Current	8.4	–	–	8.4
Lease liabilities – Current	47.0	–	–	47.0
Lease liabilities – Non-current	135.3	–	–	135.3
Derivative financial instruments – Current	–	0.1	–	0.1
Trade and other payables excluding non-financial liabilities
(mainly tax and social security costs)	77.5	–	–	77.5
	556.8	0.1	–	556.9

FINANCIAL STATEMENTS

191DR. MARTENS PLC ANNUAL REPORT 2024

21. Financial instruments continued

		31 March 2023
		Fair value
	Assets at	through other	Fair value
	amortised	comprehensive	through
	cost	income	profit or loss	Total
	£m	£m	£m	£m
Assets as per Balance Sheet
Investments	–	1.0	–	1.0
Trade and other receivables excluding prepayments and accrued income	86.3	–	–	86.3
Derivative financial assets – Current	–	0.5	–	0.5
Cash and cash equivalents	86.3	–	71.2	157.5
	172.6	1.5	71.2	245.3

1. A proportion of our cash is invested in high-quality overnight money market funds to mitigate concentration and counterparty risk.

		Fair value
	Liabilities at	through other	Fair value
	amortised	comprehensive	through profit
	cost	income	or loss	Total
	£m	£m	£m	£m
Liabilities as per Balance Sheet
Bank debt	293.4	–	–	293.4
Bank interest – Current	6.0	–	–	6.0
Lease liabilities – Current	28.1	–	–	28.1
Lease liabilities – Non-current	124.3	–	–	124.3
Derivative financial instruments – Current	–	1.3	–	1.3
Trade and other payables excluding non-financial liabilities
(mainly tax and social security costs)	115.7	–	–	115.7
	567.5	1.3	–	568.8

GROUP FINANCIAL RISK FACTORS

The Group’s activities expose it to a wide variety of financial risks including liquidity, credit and market risk (including foreign exchange and

interest rate risks). The Group’s Treasury policies seek to manage residual financial risk to within the Board agreed tolerance in a cost-effective

manner and taking advantage of natural offsets that exist or can be created through its operating activities. Where appropriate the Group uses

derivative financial instruments to hedge certain risk exposures (for example to reduce the impacts of foreign exchange volatility).

Risk management is carried out by a central Treasury Department under policies approved by the Board of Directors and the Audit and

Risk Committee. Group Finance and Treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’s

Regional operating units. The Board agrees written principles for overall risk management as well as written policies covering specific

areas such as foreign exchange risk, interest rate risk, credit risk and liquidity risk. These policies cover the allowable use of selective

derivative financial instruments and investment management processes for excess liquidity .

LIQUIDITY RISK

Cash flow forecasting is regularly performed in the operating entities of the Group and aggregated by Group Treasury. Treasury monitors

rolling forecasts of the Group’s liquidity requirements to ensure that it has sufficient cash to meet operational needs while maintaining

sufficient headroom in its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or

covenants. Surplus cash held by operating entities over and above balances required for working capital are transferred to Group Treasury

to be managed centrally. Treasury policy is to invest surplus cash in high quality, short-term, interest bearing instruments including current

accounts, term deposit and low volatility money market funds.

The Group continually reviews any medium to long-term financing requirements to ensure cost effective access to funding is available

if and when it is needed (including any debt refinancing).

192 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

21. Financial instruments continued

The table below sets out the contractual maturities (representing undiscounted contractual cash flows) of loans, borrowings and other

financial liabilities:

			At 31 March 2024
	Up to	Between	Between	More than
	3 months	3 & 12 months	1 & 5 years	5 years	Total
	£m	£m	£m	£m	£m
Bank loans – Principal	–	–	288.6	–	288.6
Bank loans – Interest	10.7	11.6	22.3	–	44.6
Total bank loans	10.7	11.6	310.9	–	333.2
Lease liabilities	14.0	39.5	118.5	30.7	202.7
Derivative financial instruments	–	0.1	–	–	0.1
Trade and other payables excluding non-financial liabilities	7 7.5	–	–	–	77.5
	102.2	51.2	429.4	30.7	613.5

			At 31 March 2023
	Up to	Between	Between	More than
	3 months	3 & 12 months	1 & 5 years	5 years	Total
	£m	£m	£m	£m	£m
Bank loans – Principal	–	–	296.8	–	296.8
Bank loans – Interest	7.8	8.6	37.7	–	54.1
Total bank loans	7.8	8.6	334.5	–	350.9
Lease liabilities	8.4	25.9	99.3	39.9	173.5
Derivative financial instruments	0.2	1.1	–	–	1.3
Trade and other payables excluding non-financial liabilities	115.7	–	–	–	115.7
	132.1	35.6	433.8	39.9	641.4

CREDIT RISK

Credit risk is managed on a Group basis, except for credit risk relating to accounts receivable balances. Each local entity is responsible for

managing and analysing the credit risk of their new customers before standard payment and delivery terms and conditions are offered.

Credit risk arises from cash and cash equivalents, derivative financial instruments, as well as credit exposures to wholesale and retail

customers, including outstanding receivables and committed transactions. Cash investments and derivative transactions are only

executed with financial institutions who hold an investment grade rating with at least one of Moody’s, Standard & Poor’s or Fitch’s rating

agencies. The Group’s Treasury policy defines strict limits that do not allow concentration of risk with individual counterparties.

For wholesale customers, risk control assesses the credit quality of the customer, taking into account its financial position, past experience

and other factors. Individual risk limits are regularly monitored. Sales to wholesale customers are settled primarily by bank transfer and

retail customers are settled in cash or by major debit/credit cards. The Group has no significant concentration of credit risk as exposure is

spread over a large number of customers.

MARKET RISK

Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from the various currency exposures, primarily with

respect to the US Dollar, Euro, Canadian Dollar and Japanese Yen. Foreign exchange risk arises from future commercial transactions,

recognised assets and liabilities and net investments in overseas operations. Foreign exchange risk arises when future commercial

transactions or recognised assets and liabilities are denominated in a currency that is not the entity’s functional currency.

The Group purchases the vast majority of its inventory from factories in Asia which are paid in US Dollars. On a net basis, the majority

of Group EBITDA is earned in currencies other than Pounds Sterling. In addition, the Group has other currency denominated debt and

investments in overseas operations whose net assets are exposed to foreign currency translation risk upon consolidation.

Cash flow and fair value interest rate risk

The Group’s interest rate risk arises from its floating rate bank debt and cash amounts held. Borrowings issued at fixed rates expose the

Group to fair value interest rate risk. The Group’s bank debt borrowings are denominated in Euros, and incur interest at variable rates

subject to floating EURIBOR with a zero rate floor.

At 31 March 2024, if interest rates on bank borrowings had been 50 basis points higher or lower with all other variables held constant,

the calculated pre-tax profit for the year would change by £1.5m (FY23: £1.5m).

FINANCIAL STATEMENTS

193DR. MARTENS PLC ANNUAL REPORT 2024

21. Financial instruments continued

CAPITAL RISK

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return

to stakeholders through the optimisation of the debt and equity balances. The Group’s overall strategy remains consistent with that from

the past few years.

The capital structure of the Group consists of net debt disclosed in note 17 and equity attributable to equity holders of the parent,

comprising issued ordinary share capital, reserves and retained earnings as disclosed in notes 23 and 24 and the Consolidated Statement

of Changes in Equity. The Group’s Board of Directors reviews the capital structure on an annual basis. The Group is not subject to any

externally imposed capital requirement.

FOREIGN CURRENCY RISK

The Group has analysed the impact of a movement in foreign exchange rate of the major non-GBP currencies on its EBITDA

(all other

foreign exchange rates remaining unchanged) as follows:

10% appreciation of currency

	FY24	FY23
	£m	£m
US Dollar	6.1	2.8
Euro	18.5	19.9
Yen	4.3	4.1

1. Alternative Performance Measure ‘APM’ as defined in the Glossary on pages 220 and 221.

Note the US Dollar movement is lower as the Group earns US Dollars from its US business and purchases substantially all inventory in

US Dollar, which provides a degree of natural offsetting. In addition to the above, a 10% appreciation in Euro against GBP would increase

annualised bank loan interest by £2.2m (FY23: £0.9m) under the terms of the new loan agreement.

22. Deferred taxation

The analysis of deferred tax assets and liabilities is as follows:

	FY24	FY23
	£m	£m
Non-current
Assets	11.2	11.8
Liabilities	(2.8)	(1.8)
	8.4	10.0

The gross movement on the deferred income tax is as follows:

	FY24	FY23
	£m	£m
Credit for the year in the Statement of Comprehensive Income	1.6	0.4

The deferred tax asset provided in the financial statements is supported by budgets and trading forecasts and relates to the following

temporary differences:

• accelerated capital allowances are the differences between the net book value of fixed assets and their tax base;

• other temporary differences are the other differences between the carrying amount of an asset/liability and its tax base that eventually

will reverse;

• unrealised profits in intra-group transactions and expenses;

• trade losses expected to be utilised in future years; and

• deferred tax on share-based payments in relation to the expected future tax deduction on the exercise of granted share options spread

over the vesting period.

194 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

22. Deferred taxation continued

The movement in deferred income tax assets and liabilities during the year is as follows:

	Accelerated	Unrealised	Other
	capital	intra-group	temporary		Share-based
	allowances	profits	differences	Tax losses	payments	Total
	£m	£m	£m	£m	£m	£m
At 1 April 2022	(2.0)	3.2	7. 1	0.6	0.7	9.6
Statement of Profit or Loss (charge)/credit	(0.4)	0.8	0.1	0.1	(0.4)	0.2
Credited directly to equity	–	–	0.2	–	–	0.2
Foreign exchange	–	–	–	–	–	–
At 31 March 2023	(2.4)	4.0	7.4	0.7	0.3	10.0
Statement of Profit or Loss (charge)/credit	(0.8)	(0.4)	0.5	(0.1)	–	(0.8)
(Charged)/credited directly to equity	–	–	(0.7)	–	0.5	(0.2)
Foreign exchange	–	(0.3)	(0.3)	–	–	(0.6)
At 31 March 2024	(3.2)	3.3	6.9	0.6	0.8	8.4

Deferred taxation not provided in the financial statements:

	FY24	FY23
	£m	£m
Tax losses	9.1	9.1

1. This is the tax effected amount of losses that have not been provided for in the financial statements, calculated using the rate at which the losses would be expected to be

used. There is £36.3m (FY23: £36.6m) of gross tax losses that have not been provided for because they are either capital losses (which can only be used against future

capital gains which we are not forecasting) or they are non-trade loan relationship losses which can only be used in the same company (and are in companies we don’t

expect to have any loan relationship profits).

The deferred tax assets and liabilities have been measured at the corporation tax rate expected to apply to the reversal of the timing

difference, based on rates that are enacted or substantively enacted by the end of each reporting period. There are no material temporary

differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements, for which deferred

tax liabilities have not been recognised.

23. Ordinary share capital

	FY24	FY24	FY23	FY23
	No.	£m	No.	£m
Authorised, called up and fully paid
Ordinary shares of £0.01 each	961,878,608	9.6	1,000,793,898	10.0

The movements in the ordinary share capital during the year ended 31 March 2024 and 31 March 2023 were as follows:

	FY24	FY24	FY23	FY23
	No.	£m	No.	£m
At 1 April	1,000,793,898	10.0	1,000,222,700	10.0
Shares issued	953,845	–	571,198	–
Repurchase and cancellation of ordinary share capital	(39,869,135)	(0.4)	–	–
At 31 March	961,878,608	9.6	1,000,793,898	10.0

The cost of shares purchased by the SIP Trusts is offset against the profit and loss account, as the amounts paid reduce the profits

available for distribution by the Company.

During the year ended 31 March 2024 Dr. Martens plc repurchased 39.9 million ordinary shares for a total consideration of £50.5m,

including transaction costs of £0.5m, as part of a share repurchase programme announced on 1 July 2023. All shares purchased were for

cancellation. The repurchased shares represented 4.1% of ordinary share capital. The number of shares in issue is reduced where shares

are repurchased.

FINANCIAL STATEMENTS

195DR. MARTENS PLC ANNUAL REPORT 2024

24. Treasury shares

The movements in treasury shares held by the Company during the year ended 31 March 2024 were as follows:

	FY24	FY24		FY23	FY23
	No.	£m		No.	£m
At 1 April	110,153	–		16,925	–
Repurchase of shares for cancellation	39,869,135	50.0		–	–
Cancellation of shares	(39,869,135)	(50.0)		–	–
Shares issued for share schemes held in trust	284,770	–		93,228	–
At 31 March	394,923	–	110,1	53	–

On 14 July 2023 Dr. Martens plc announced a share buyback programme. Treasury shares existed during the year as a result of the timing

delay between the repurchase of shares under this programme and the subsequent cancellation of these shares. The programme

concluded on 19 December 2023.

25. Reserves

The following describes the nature and purpose of each reserve within equity:

Reserve	Description and purpose
Ordinary share capital	Nominal value of subscribed shares.
Hedging reserve	Represents the movements in fair value on designated hedging instruments.
Treasury shares	This reserve relates to shares held by SIP Trusts as ‘treasury shares’. The shares held by the SIP
	Trusts were issued directly to the Trusts in order to satisfy outstanding employee share options
	and potential awards under the employee share incentive schemes. The Company issued
	284,770 shares directly to the Trusts during the year and held 3		94,923 as at 31 March 2024
	shares’. This reserve also included treasury shares repurchased but not yet cancelled, pursuant	(31March 2023: 110,153).Thisreserve was previously referred to as ‘capital reserve – own
	to the share buyback programme, which concluded during FY24.
Capital redemption reserve	A non-distributable reserve into which amounts are transferred following the redemption or
	purchase of own shares. The reserve was created in order to ensure sufficient distributable
	reserves were available for the purpose of redeeming preference shares in the prior years.
Merger reserve	The difference between the nominal value of shares acquired by Dr. Martens plc (the Parent
	Company) in the share for share exchange with Doc Topco Limited and the nominal value of
	shares issued to acquire them on 11 December 2020.
Foreign currency translation reserve	Includes translation gains or losses on translation of foreign subsidiaries’ financial statements
	from the functional currencies to the presentational currency.
Retained earnings	net of distributions and equity-settled share-based awards. Included in retained earnings	Retained earnings represent the profits of the Group made in current and preceding years,
	are distributable reserves.

26. Share-based payments and share schemes

EXECUTIVE SHARE PLAN – THE DR. MARTENS LONG TERM INCENTIVE PLAN (LTIP)

Awards of shares to Executive Directors and other senior executives are made under the Long Term Incentive Plan (LTIP): the

Performance Share Plan (PSP) for the Executive Directors and Global Leadership Team (GLT) and the Restricted Share Unit Plan (RSU)

for GLT direct reports and other employees. The LTIP is a discretionary share plan under which awards are approved and granted at the

discretion of the Remuneration Committee.

Long Term Incentive Plan – Performance Share Plan (PSP)

Awards of conditional shares are granted to the Executive Directors and GLT. These awards are currently capable of vesting subject to

the achievement of set performance conditions over a three-year performance period and continued service. There are two performance

conditions attached to the awards which are Total Shareholder Return (TSR), which is a market-based performance condition, and EPS

growth, which is a non-market-based performance condition. The fair value of the TSR element of the performance conditions is calculated

and fixed at the date of grant using a Stochastic options pricing model. The fair value of the EPS element of the performance conditions

is reviewed at each Balance Sheet date and adjusted through the number of awards expected to vest. The fair value of the PSP is the

face value of the awards at the date of grant (calculated using the closing share price on the day preceding grant). The awards will vest to

participants at the end of the vesting period subject to the performance conditions of the award being met. The entitlement of any of the

awards for leavers are subject to good and bad leaver provisions as set out in the Plan Rules. There are no cash settlement alternatives

and the Group accounts for the PSP as an equity-settled plan. Full details on the performance conditions for all the LTIP awards can be

found in the Remuneration Report on pages 119 to 133 of the Annual Report.

196 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

26. Share-based payments and share schemes continued

Long Term Incentive Plan – Restricted Share Unit Plan (RSU)

Conditional awards of shares under the RSU are granted to GLT direct reports and other employees of the Group. There are no performance

conditions attached to the awards, the awards will only vest should the participants remain employed on the vesting date. If participants leave

the Group their awards would usually lapse in full however there are good and bad leaver provisions set out in the Plan Rules. The fair value of

Restricted Share Unit awards is the face value of the awards at the date of grant (calculated using the closing share price on the day preceding

grant). The Group accounts for the Restricted Share Unit awards as an equity-settled plan.

MOVEMENTS DURING THE YEAR

The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, shares subject to LTIP

schemes during the year:

					FY24		FY23
					LTIP		LTIP
		No.				WAEP	No.	WAEP
Outstanding at the beginning of the year		6,788,582				–	3,187, 8 9 9	–
Granted	1	0	,5	97,18	4	£0.00	4,593,183	£0.00
Vested					(653,105)	–	(402,860)	–
Forfeited					(1,408,092)	–	(589,640)	–
Outstanding at the end of the year					15,324,569	£0.00	6,788,582	£0.00
Weighted average contractual life remaining (years)					1.6	£0.00	1.8	£0.00

FAIR VALUE MEASUREMENT

The following table lists the inputs to the models used for the plans granted during the year ended 31 March 2024:

		FY24
		LTIP
	PSP	RSU	RSU
Date of grant	30/06/2023	30/06/2023	14/12/2023
Share price (pence)	119.3	119.3	88.5
Fair value at grant date (pence)	96.7	119.3	88.5
Exercise price (pence)	0	0	0
Dividend yield (%)	Nil	Nil	Nil
Expected volatility (%)	55.05%	Nil	Nil
Risk-free interest rate (%)	5.13%	Nil	Nil
Expected life (years)	3 years	3 years	3 years
Model used	Monte Carlo	n/a	n/a

		FY23
		LTIP
	PSP	RSU	RSU
Date of grant	15/06/2022	15/06/2022	08/12/2022
Share price (pence)	238	238	193
Fair value at grant date (pence)	205	238	193
Exercise price (pence)	0	0	0
Dividend yield (%)	Nil	Nil	Nil
Expected volatility (%)	50.71%	Nil	Nil
Risk-free interest rate (%)	2.23%	Nil	Nil
Expected life (years)	3 years	3 years	2.7 years
Model used	Monte Carlo	N/A	N/A

FINANCIAL STATEMENTS

197DR. MARTENS PLC ANNUAL REPORT 2024

26. Share-based payments and share schemes continued

The following schemes granted in FY22 were also still in existence during FY23 and FY24:

		FY22
		LTIP
	PSP	RSU	RSU
Date of grant	15/12/2021	06/07/2021	15/12/2021
Share price (pence)	388	453	388
Fair value at grant date (pence)	301	453	388
Exercise price (pence)	0	0	0
Dividend yield (%)	Nil	Nil	Nil
Expected volatility (%)	54.57%	Nil	Nil
Risk-free interest rate (%)	0.42%	Nil	Nil
Expected life (years)	2.3 years	2.7 years	2.3 years
Model used	Monte Carlo	N/A	N/A

VOLATILITY

For determining expected volatility, IFRS 2 requires the fair value to take into account historical volatility over the expected term. Where

Dr. Martens plc has been listed for less than the expected life of the plans it does not have sufficient information on historical volatility, and

it computes volatility for the longest period for which trading activity is available. It also considered the historical volatility of similar entities

in the same industry for the equivalent period of their listed share price history.

ALL EMPLOYEE PLAN – SHARE INCENTIVE PLAN (SIP) AND INTERNATIONAL SHARE INCENTIVE PLAN

The Group has two SIP Trusts, Dr. Martens plc UK Share Incentive Plan Trust (‘SIP-UK’) and Dr. Martens plc International Share Incentive

Plan Trust (‘SIP-International’), for the purpose of facilitating the holding of shares in Dr. Martens plc for the benefit of employees of the

Group. The assets of the employee share trusts are held by the separate trusts, of which the Directors consider that Dr. Martens plc has

control for accounting purposes.

Share Incentive Plan (SIP): Buy As You Earn

In October 2021 employees were granted Free Shares under the Share Incentive Plan (SIP), these shares remain under restriction and

will become available to employees from October 2024 when the forfeiture period lifts. In September 2022 the Company launched the

purchase and matching element of the SIP known as Buy As You Earn (BAYE). Employees can elect to make a monthly contribution from

their gross pay to purchase shares in Dr. Martens plc (‘partnership shares’). For each partnership share acquired, the Company will award

a ‘matching’ share. Matching shares are subject to a three-year forfeiture period, and employees will receive the matching shares if they

remain employed at the end of this period of service.

The matching shares fall within the scope of IFRS 2 and are classed as equity-settled share-based payments with a three-year forfeiture

period, due to the condition of continued service for three years from the allocation date. A new invitation to join the plan will be rolled out

each year effective 1 September. On 11 November 2022, the first matching shares were allocated to employees who had opted into the

plan and purchased partnership shares. These awards are subject to a three-year forfeiture period after the date of purchase of the

corresponding partnership shares. There are no cash settlement alternatives and the Group accounts for the SIP as an equity-settled plan.

Global Share Incentive Plan (SIP): International Buy As You Earn

In October 2021 employees were granted Free Shares under the International Share Incentive Plan (SIP); these shares vested in April

2022 where sufficient shares were sold to cover their tax/social security liabilities where applicable and are now beneficially owned by the

employees. In March 2023 the Company launched the purchase and matching element of the International SIP known as International

Buy As You Earn (BAYE). Employees can elect to make a monthly contribution from their net pay to purchase shares in Dr. Martens plc

(‘partnership shares’). Partnership shares are purchased quarterly with the first purchase in July 2023. For each partnership share

acquired, the Company will award a ‘matching’ share annually. Matching shares are subject to a three-year forfeiture period. The matching

shares fall within the scope of IFRS 2 and are classed as equity-settled share-based payments with a three year forfeiture period, and

employees will receive the matching shares if they remain employed at the end of this period of service. A new invitation to join the plan

will be rolled out each year effective 1 September.

198 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

26. Share-based payments and share schemes continued

The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, SIP shares during the year:

	FY24	FY23
	SIP	SIP
	No.	No.
Outstanding at the beginning of the year	92,318	–
Granted	335,940	93,591
Vested	–	–
Forfeited	(42,735)	(1,273)
Outstanding at the end of the year	385,523	92,318
Weighted average contractual life remaining (years)	2 years	3 years

FAIR VALUE MEASUREMENT

The following table lists the inputs to the model used for the SIP plans for the years ended 31 March 2024 and 2023:

	FY24	FY23
	SIP	SIP
Date of grant	22/09/2023	15/09/2022
Share price (pence)	82-165	128-290
Fair value at grant date (pence)	82-165	128-290
Exercise price (pence)	0	0
Dividend yield (%)	Nil	Nil
Expected volatility (%)	0	0
Risk-free interest rate	0	0
Expected life (years)	3 years	3 years
Model used	N/A	N/A

Share schemes – additional information

Employer payroll taxes are being accrued, where applicable, at local rate, which management expects to be the prevailing rate when the

awards are exercised, based on the share price at the reporting date. The total employer payroll taxes for the year relating to all the awards

was £0.2m (FY23: £nil).

Included in staff costs and accruals is £0.1m (FY23: £0.4m) in relation to expenses arising from cash-settled share-based payments.

Included in staff costs is £3.9m (FY23: £0.5m) in relation to expenses arising from equity-settled share-based payments. Within this

amount is £0.1m (FY23: £nil) in relation to the SIP.

Global Bonus Scheme Share Plan

The Remuneration Committee of the Group has determined that a proportion of the annual Executive Bonus Scheme will be utilised

(on a net basis) to purchase Parent Company shares. There were no cancellations or modifications during the year.

FINANCIAL STATEMENTS

199DR. MARTENS PLC ANNUAL REPORT 2024

27. Financial commitments

The Group is party to a number of warehousing agreements whereby it is committed to certain costs which are not required to be reflected

on the Balance Sheet. These costs pertain to storage costs for some warehouses that do not meet the recognition requirements of IFRS

16, and the fixed-cost elements of the additional services that the Group’s warehouse operators provide.

The below table discloses the contractual cash flows that the Group is committed to under these arrangements, excluding the effects

of future rate increases allowable within the agreements.

	FY24	FY23
	£m	£m
Within 1 year	7.4	8.2
1 to 5 years	9.0	16.7
Over 5 years	–	–
	16.4	24.9

Short-term leases for retail stores are not required to be included above as the portfolio of short-term leases to which the Group is

committed to at the end of the reporting period is not dissimilar to the portfolio of short-term leases to which the short-term lease expense

disclosed in note 28 relates.

Guarantees exist in the form of a rent guarantees to various landlords of £3.2m (FY23: £3.5m) and other guarantees of £0.2m

(FY23: £0.2m). These guarantees which aggregate to £3.4m (FY23: £3.7m) are guaranteed under the revolving credit facility.

Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

	FY24	FY23
	£m	£m
Property, plant and equipment	–	1.7

The Group has additional commitments relating to leases where the Group has entered into an obligation but does not yet have control

of the underlying asset. The future lease payments to which the Group is committed, over the expected lease term, but are not recorded

on the Group’s Balance Sheet are as follows:

	FY24	FY23
	£m	£m
Within 1 year	0.3	1.1
1 to 5 years	0.9	6.6
Over 5 years	0.1	8.5
	1.3	16.2

28. Leases

Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and borrowings) and the movements

during the year:

Note

		FY24	FY23
		£m	£m
At 1 April		152.4	112.9
Additions		72.5	60.6
Reassessments		(4.7)	5.5
Modifications		10.1	(0.8)
Interest expense	7	8.6	4.8
Lease capital and interest repayments		(52.2)	(33.9)
Foreign exchange		(4.4)	3.3
At 31 March		182.3	152.4
Current	17	47.0	28.1
Non-current	17	135.3	124.3

1. Additions comprises RoU additions less working capital of £4.5m (FY23: £5.9m) .

200 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

28. Leases continued

The following amounts were recognised in the Statement of Profit or Loss:

Note

		FY24	FY23
		£m	£m
Depreciation expense of right-of-use assets		51.3	32.2
Gain on remeasurement of leases		(1.1)	–
Interest expense on lease liabilities	7	8.6	4.8
Expenses relating to short-term leases		0.3	1.3
Variable lease payments		3.5	2.8
Total operating expenses recognised in profit		3.8	4.1
Total amount recognised in profit		62.6	41.1

VARIABLE LEASE PAYMENTS ON SALES

Some leases of retail stores contain variable lease payments that are based on sales that the Group makes at the store. These payment

terms are common in retail stores in some countries where the Group operates. Fixed and variable payments for the year ended 31 March

2024 were as follows:

				Estimated annual
				impact on rent
		Variable		of a 1% increase
	Fixed payments	payments	Total payments	in sales
	£m	£m	£m	£m
FY24: Leases with lease payments based on sales	13.5	3.5	17.0	0.1
FY23: Leases with lease payments based on sales	10.2	2.8	13.0	0.1

Turnover related rent is where the contract states the lease rent is the higher of the fixed base rent or percentage of turnover of the store.

Unless specified otherwise in the lease, turnover rent is defined as net turnover (i.e. excluding returns), not including click and collect.

To verify the correct rent, the landlord often requests ‘turnover certificates’ on a regular basis, e.g. monthly/quarterly/annually. The rent is

invoiced in arrears based on this calculation and accrued monthly. It is paid as invoiced depending on the lease terms. The fixed base

element is capitalised as above and the variable element (based on turnover) is expensed to the Consolidated Statement of Profit or Loss.

EXTENSION OPTIONS

Some leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable contract period.

Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options

held are exercisable only by the Group and not by the lessors. The Group will reassess and remeasure when there is a significant event or

change in circumstances. For example, lease renewals or business decisions to exercise lease breaks. These are reviewed and embedded

to the model by the Property Accountant as they occur.

		Potential future
		lease payments
	Lease liabilities	not included in
	recognised	lease liabilities
	(discounted)	(undiscounted)
	£m	£m
FY24: Leases with lease extension options	43.3	84.0
FY23: Leases with lease extension options	35.3	56.6

FINANCIAL STATEMENTS

201DR. MARTENS PLC ANNUAL REPORT 2024

29. Pensions

DEFINED CONTRIBUTION SCHEME

The Group operates a defined contribution pension scheme for its employees. The Group’s expenses in relation to this scheme were £5.4m

for the year ended 31 March 2024 (FY23: £4.7m) and at 31 March 2024 £1.0m (FY23: £0.8m) remained payable to the pension fund.

DEFINED BENEFIT SCHEME

Dr Martens Airwair Group Limited and Airwair International Limited (subsidiaries of the Group) operate a pension arrangement called the

Dr. Martens Airwair Group Pension Plan (the Plan). The Plan has a defined benefit section that provides benefits based on final salary and

length of service on retirement, leaving service or death. The defined benefit section closed to new members on 6 April 2002 and closed to

future accrual with effect from 31 January 2006. The Plan also has a defined contribution section that provides money purchase benefits to

some current and former employees.

The Plan is managed by a board of Trustees appointed in part by Airwair International Limited and in part from elections by members of the

Plan. The Trustees have responsibility for obtaining valuations of the fund, administering benefit payments and investing the Plan’s assets.

The Trustees delegate some of these functions to their professional advisers where appropriate.

The defined benefit section of the Plan is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Plan

is carried out at least once every three years to determine whether the Statutory Funding Objective is met. The last valuation was carried

out at 30 June 2022 which confirmed that the Plan had sufficient assets to meet the Statutory Funding Objective. The next valuation is due

at 30 June 2025. The Statutory Funding Objective does not currently impact on the recognition of the Plan in these financial statements.

During the year, no discretionary benefits were awarded. There were no Plan amendments, settlements or curtailments during the year.

The weighted average duration of the defined benefit obligation is approximately 12 years (FY23: 13 years). Around 50% of the

undiscounted benefits are due to be paid beyond 17 years’ time, with the projected actuarial cash flows declining to zero in about 70 years.

KEY RISKS

The defined benefit section of the Plan exposes Airwair International Limited to a number of risks:

• Investment risk. The Plan holds investments in asset classes, such as equities, which have volatile market values and while these

assets are expected to provide real returns over the long term, the short-term volatility can cause additional funding to be required

if a deficit emerges.

• Interest rate risk. The value of the Plan’s liabilities is assessed using market yields on high quality corporate bonds to discount the

liabilities. As the Plan holds assets such as equities, the value of the assets and liabilities may not move in the same way. The Plan

holds derivatives to manage a proportion of the interest rate risk.

• Inflation risk. A significant proportion of the benefits under the Plan are linked to inflation. Although the Plan’s assets are expected to

provide a good hedge against inflation over the long term, movements in inflation expectations over the short term could lead to a deficit

emerging. The Plan holds some derivatives to hedge a proportion of the potential changes in the value of the liabilities due to changes

in market inflation expectations.

• Mortality risk. In the event that members live longer than assumed, a deficit could emerge in the Plan.

Although the Lloyds Banking Group Pensions Trustees Limited v. Lloyds Bank PLC (and others) court judgment on 26 October 2018 (and

the subsequent court judgment on 20 November 2020) provided some clarity in respect of GMP equalisation and the obligations that this

places on schemes, the actual impact of equalising the Plan’s GMPs remains uncertain. An approximate allowance equivalent to 1.1%

(FY23: 0.8%) of the value of the liabilities has been made in the disclosures for the impact of GMP equalisation. There were no other plan

amendments, curtailments or settlements during the year.

A judgment in the High Court case of Virgin Media vs NTL Trustees was handed down on 16 June 2023. The judge ruled that, where

benefit changes were made without a valid ‘section 37’ certificate from the Scheme Actuary, those changes could be considered void. The

judgment could have material consequences for some defined benefit schemes, such as the Plan, which previously contracted-out of the

state pension system. The Group understands that the judgment is due to be appealed and, as such, there is considerable uncertainty as

to whether the judgment will stand and, if it does, the impact on the Plan, if any. As a result of this uncertainty, these disclosures have been

calculated assuming that this ruling will not affect the Plan’s benefits.

EFFECT OF THE PLAN ON THE COMPANY’S FUTURE CASH FLOWS

Airwair International Limited is required to agree a Schedule of Contributions with the Trustees of the Plan following a valuation, which must be

carried out at least once every three years. Following the valuation of the Plan at 30 June 2022, a Schedule of Contributions was agreed under

which Airwair International Limited was not required to make any contributions to the defined benefit section of the Plan (other than payments

in respect of administrative expenses). Accordingly, Airwair International Limited does not expect to contribute to the defined benefit section of

the Plan, although it will continue to contribute to the defined contribution section in line with the Schedule of Contributions. The next valuation

of the Plan is due at 30 June 2025. If this reveals a deficit then Airwair International Limited may be required to pay contributions to the Plan to

repair the deficit over time.

202 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

29. Pensions continued

The amounts recognised in the Balance Sheet (under IAS 19 Employee Benefits) are determined as follows:

	FY24	FY23
	£m	£m
Fair value of plan assets – defined benefit section	46.7	49.5
Present value of funded obligations – defined benefit section	(37.6)	(38.4)
Surplus of funded plans	9.1	11.1
Impact of asset ceiling	(9.1)	(11.1)
Net pension asset	–	–

Although the Plan has a surplus, this is not recognised on the grounds that Airwair International Limited is unlikely to derive any future

economic benefits from the surplus. As such, an asset ceiling has been applied to the Balance Sheet, and the net surplus of £9.1m

(FY23: £11.1m) has not been recognised on the Balance Sheet. The net surplus has been capped to £nil (FY23: £nil).

A reconciliation of the net defined benefit asset over the year is given below:

	FY24	FY23
	£m	£m
Net defined benefit asset at beginning of year	–	–
Total defined benefit charge in the Statement of Profit or Loss	–	–
Remeasurement losses in the Statement of Comprehensive Income	–	–
Employer’s contributions	–	–
Net defined benefit asset at end of the year	–	–

The amount charged to the Statement of Profit or Loss and Statement of Comprehensive Income in respect of the defined benefit

section of the Plan was £nil (FY23: £nil). Costs in respect of the defined contribution section of the Plan, and other defined contribution

arrangements operated by Airwair International Limited, are allowed for separately.

The remeasurements in respect of the defined benefit section of the Plan, to be shown in the Statement of Comprehensive Income,

are shown below:

	FY24	FY23
	£m	£m
Losses on defined benefit assets in excess of interest	3.0	18.3
Experience loss on defined benefit obligation	0.3	–
Gains from changes to demographic assumptions	(0.4)	(0.4)
Gains from changes to financial assumptions	(0.4)	(15.4)
Change in effect of asset ceiling	(2.5)	(2.5)
Total remeasurements to be shown in other comprehensive income	–	–

The change in defined benefit scheme assets over the year was:

	FY24	FY23
	£m	£m
At 1 April	49.5	68.6
Interest on defined benefit assets	2.3	1.7
Movement on defined benefit section assets less interest	(3.0)	(18.3)
Benefits paid from the defined benefit section	(2.1)	(2.5)
At 31 March	46.7	49.5

FINANCIAL STATEMENTS

203DR. MARTENS PLC ANNUAL REPORT 2024

29. Pensions continued

The change in the defined benefit scheme funded obligations over the year was:

	FY24	FY23
	£m	£m
At 1 April	38.4	55.3
Past service cost	–	–
Interest cost on defined benefit obligation	1.8	1.4
Experience loss on defined benefit obligation	0.3	–
Changes to demographic assumptions	(0.4)	(0.4)
Changes to financial assumptions	(0.4)	(15.4)
Benefits paid from the defined benefit section	(2.1)	(2.5)
At 31 March	37.6	38.4

The change in the effect of the asset ceiling over the year was as follows:

	FY24	FY23
	£m	£m
At 1 April	11.1	13.3
Net interest charge on asset ceiling	0.5	0.3
Changes in the effect of the asset ceiling excluding interest	(2.5)	(2.5)
At 31 March	9.1	11.1

A breakdown of the assets is set out below, split between those assets that have a quoted market value in an active market and those that do

not. The assets do not include any investment in shares of Airwair International Limited, nor any property owned or occupied by the Group.

	FY24	FY23
	£m	£m
Assets with a quoted market value in an active market:
Cash and other Domestic	0.1	0.2
	0.1	0.2
Assets without a quoted market value in an active market:
Equities and property
Domestic	3.0	0.2
Foreign	4.3	4.5
	7.3	4.7
Fixed interest bonds
Unspecified	6.3	9.4
	6.3	9.4
Index linked gilts
Domestic	30.0	30.1
	30.0	30.1
Alternatives
Unspecified	1.8	3.9
	1.8	3.9
Property
Unspecified	0.4	1.0
	0.4	1.0
Insured annuities
Domestic	0.9	0.9
	0.9	0.9
Cash and other Domestic	1.5	1.0
Foreign	–	–
Unspecified	(1.6)	(1.7)
	(0.1)	(0.7)
Fair value of plan assets	46.7	49.5

204 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

29. Pensions continued

A full actuarial valuation was carried out at 30 June 2022. The results of that valuation were updated to 31 March 2024 by a qualified

independent actuary. The principal assumptions selected by Airwair International Limited and used by the actuary to calculate the Plan’s

defined benefit obligation were:

		FY24	FY23
		£m	£m
Discount rate		4.9%	4.8%
Inflation assumption (RPI)		3.2%	3.3%
Inflation assumption (CPI)		2.5%	2.6%
LPI pension increases subject to 5% cap		3.1%	3.2%
LPI pension increases subject to 3% cap		2.5%	2.5%
Revaluation in deferment		2.5%	2.6%
Post retirement mortality assumption		105% (males) and 111%	105% (males) and 111%
		(females) of S3PA tables, with	(females)ofS3PAtables, with
		allowance for future	allowance for future
		improvements in line with the	improvements in line with the
		CMI_2022 core projection	CMI_2021 core projection
		model using 0% 2020 and	model using 7.5% 2020 and
		2021 weight parameters, a	2021 weight parameters, a
		25% 2022 weight parameter, a	long-term rate of improvement of
		long-term rate of improvement	1.0% p.a. and an initial addition
		of 1.0% p.a. and an initial	of 0.2%
		addition of 0.2%
Tax free cash		Members are assumed to take	Members are assumed to take
		50% of the maximum tax free	50% of the maximum tax free
		cash possible	cash possible
Proportion married at retirement or earlier death		80% of male members and	80% of male members and 65%
		65% of female members are	of female members are
		assumed to be married at	assumed to be married at
		retirement or earlier death	retirement or earlier death
Age difference		Males three years older than	Males three years older than
		dependant, females one year	dependant, females one year
		younger than dependant	younger than dependant
Assumed life expectancies on retirement at age 65 are:
Retiring today:	Male	21.1	21.3
	Female	23.2	23.4
Retiring in 20 years’ time:	Male	22.1	22.3
	Female	24.3	24.5

The key sensitivities of the defined benefit obligation to the actuarial assumptions are shown below:

	FY24	FY23
	£m	£m
Discount rate
Plus 0.5%	(2.7)	(2.2)
Minus 0.5%	3.0	2.4
Plus 1.0%	(4.6)	(4.4)
Minus 1.0%	5.7	5.5
Rate of inflation
Plus 0.5%	2.0	0.9
Minus 0.5%	(1.8)	(0.7)
Life expectancy
Plus 1.0 year	1.6	1.4
Minus 1.0 year	(1.6)	(1.4)

FINANCIAL STATEMENTS

205DR. MARTENS PLC ANNUAL REPORT 2024

29. Pensions continued

The sensitivity illustrations set out above are approximate. They show the likely effect of an assumption being adjusted while all other

assumptions remain the same. Only the impact on the liability value (i.e. the defined benefit obligation) is considered – in particular:

• No allowance is made for any changes to the value of the Plan’s invested assets in scenarios where interest rates or market inflation

expectations change; and

• No allowance is made for changes in the value of the annuity policies held by the Plan, which is calculated using the same actuarial

assumptions as for the Plan’s defined benefit obligation.

Such changes to the asset values would be likely to partially offset the changes in the defined benefit obligation.

The net Balance Sheet and Statement of Profit or Loss are not sensitive to the actuarial assumptions used at the current time, due to the

effect of the asset ceiling.

30. Related party transactions

TRANSACTIONS WITH RELATED PARTIES

Transactions between the Company and its wholly owned subsidiaries, which are related parties of the Company, have been eliminated

on consolidation and are not disclosed in this note. A list of investments in subsidiary undertakings can be found in note 13 to the Parent

Company financial statements.

	FY24	FY23
	£’000	£’000
GFM GmbH Trademarks
Amounts incurred	64.7	262.3
Amounts payable by/(owed)at year end	(4.6)	(6.3)
TeamViewer
Amounts incurred	16.2	17.1
Amounts payable by/(owed)at year end	–	–
Truepoint
Amounts incurred	212.0	–
Amounts payable by/(owed)at year end	–	–

1. GFM GmbH Trademarks is related to the Group as it provides services or has a transactional relationship with the Group and is an equity-accounted joint venture under joint

control of the Group.

2. TeamViewer is related to the Group as they provide services or have a transactional relationship with the Group and represents an investment within funds advised by

Permira Advisers LLP. The Group’s largest investor, IngreLux S.àr.l., is also owned by funds advised by Permira Advisers LLP.

3. Truepoint is related to the Group as they provide services or have a transactional relationship with the Group and one of the Group’s Independent Directors is also a Director

at the related entity.

KEY MANAGEMENT PERSONNEL COMPENSATION

The compensation of key management (including Executive and Non-Executive Directors) for the year was as follows:

	FY24	FY23
	£m	£m
Salaries and benefits	5.1	5.5
Pensions	0.3	0.2
LTIPs – Share-based payments	0.6	0.9

206 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

PARENT

COMPANY

STATEMENTS

Parent Company Balance Sheet 208

Parent Company Statement

of Changes in Equity 209

Notes to the Parent Company

Financial Statements 210

In this section:

FINANCIAL STATEMENTS

207DR. MARTENS PLC ANNUAL REPORT 2024

Note

Total

FY24

£m

Total

FY23

£m

Fixed assets

Investments 6 1,413.4 1,413.4

1,413.4 1,413.4

Current assets

Debtors 7 3.1 1.7

Cashandcashequivalents 8 0.1 0.2

3.2 1.9

Total assets 1,416.6 1,415.3

Current liabilities

Tradeandotherpayables 9 (1.2) (10.5)

Total liabilities (1.2) (10.5)

Net assets 1,415.4 1,404.8

Equity

Ordinarysharecapital 10 9.6 10.0

Treasuryshares 11 – –

Capitalredemptionreserve 12 0.4 –

Retainedearnings 12 1,405.4 1,394.8

Total equity

1,415.4 1,404.8

Aspermittedbysection408oftheCompaniesAct2006,theCompany’sStatementofProfitorLosshasnotbeenincludedinthese

financialstatements.

TheCompanygeneratedaprofitfortheyearto31March2024of£114.9m(FY23:£46.2m).

Thenotesonpages210to215areanintegralpartofthesefinancialstatements.

Thefinancialstatementsonpages208to215wereapprovedandauthorisedbytheBoardofDirectorson29May2024andsigned

onitsbehalfby:

KENNY WILSON GILES WILSON

CHIEFEXECUTIVEOFFICER  CHIEFFINANCIALOFFICER

208 DR. MARTENS PLC ANNUAL REPORT 2024

PARENT COMPANY BALANCE SHEET

ASAT31MARCH2024

Company registration number 12960219

Note

Ordinary

share capital

£m

Treasury

£m

Capital

redemption

reserve

£m

Retained

earnings

£m

Total equity

£m

At 1 April 2022 10.0 – – 1,406.5 1,416.5

Profitfortheyear – – – 46.2 46.2

Totalcomprehensiveincomefortheyear – – – 46.2 46.2

Dividendspaid 5 – – – (58.4) (58.4)

Sharesissued 10 – – – – –

Share-basedpayments – – – 0.5 0.5

At 31 March 2023 10.0 – – 1,394.8 1,404.8

Profitfortheyear – – – 114.9 114.9

Totalcomprehensiveincomefortheyear – – – 114.9 114.9

Dividendspaid 5 – – – (57.8) (57.8)

Sharesissued 10 – – – – –

Share-basedpayments – – – 4.0 4.0

Repurchaseofordinarysharecapital 11 – (50.0) – (0.5) (50.5)

Cancellationofrepurchasedordinarysharecapital 11 (0.4) 50.0 0.4 (50.0) –

At 31 March 2024 0 9.6 – 0.4 1,405.4 1,415.4

FINANCIAL STATEMENTS

209DR. MARTENS PLC ANNUAL REPORT 2024

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY

FORTHEYEARENDED31MARCH2024

1. General information

Dr.Martensplc(the‘Company’)isapubliccompanylimitedbysharesincorporatedintheUnitedKingdom,andregisteredanddomiciled

inEnglandandWales,whosesharesaretradedontheLondonStockExchange.TheCompany’sregisteredofficeis:28JamestownRoad,

Camden,LondonNW17BY.TheprincipalactivityoftheCompanyanditssubsidiaries(togetherreferredtoasthe‘Group’)isthedesign,

development,procurement,marketing,sellinganddistributionoffootwear,undertheDr.Martensbrand.

2. Accounting policies

Theprincipalaccountingpoliciesadoptedinthepreparationofthefinancialstatementsaresetoutbelow.Thepolicieshavebeen

consistentlyappliedtotheperiodspresented,unlessotherwisestated.AmountsarepresentedinGBPandtothenearestmillionpounds

(toonedecimalplace)unlessotherwisenoted.

BASIS OF PREPARATION

ThefinancialstatementsoftheCompanyhavebeenpreparedinaccordancewiththeCompaniesAct2006,andFinancialReporting

Standard101‘ReducedDisclosureFramework’(‘FRS101’).Thefinancialstatementshavebeenpreparedonagoingconcernbasisunder

thehistoricalcostconvention.FRS101enablesthefinancialstatementsoftheCompanytobepreparedinaccordancewithIFRSbutwith

certaindisclosureexemptions.Themainareasofreduceddisclosureareinrespectofequity-settledshare-basedpayments,financial

instruments,theStatementofCashFlows,andrelatedpartytransactionswithGroupcompanies.Theaccountingpoliciesadoptedforthe

CompanyareotherwiseconsistentwiththoseusedfortheGroupwhicharesetoutonpages165to176.AspermittedbySection408of

theCompaniesAct2006,theStatementofProfitorLossoftheCompanyisnotpresentedaspartofthefinancialstatements.

ThepreparationoffinancialstatementsinconformitywithFRS101requirestheuseofcertaincriticalaccountingestimates.Italsorequires

managementtoexerciseitsjudgementintheprocessofapplyingtheCompany’saccountingpolicies.Theareasinvolvingahigherdegree

ofjudgementorcomplexity,orareaswhereassumptionsandestimatesaresignificanttothefinancialstatements,aredisclosedinthe

significantjudgementsandestimatessection.

Financial Reporting Standard 101 – reduced disclosure exemptions

ThisbasisofpreparationhasenabledtheCompanytotakeadvantageoftheapplicabledisclosureexemptionspermittedbyFRS101

inthefinancialstatements.ThefollowingdisclosureshavenotbeenprovidedaspermittedbyFRS101:

• acashflowstatementandrelatednotes;

• disclosuresinrespectoftransactionswithwhollyownedsubsidiaries;

• disclosuresinrespectofcapitalmanagement;

• theeffectsofnewbutnotyeteffectiveIFRS;

• disclosuresinrespectofthecompensationofkeymanagementpersonnelasrequired;and

• statementofcompliancewithallIFRS.

TheCompanyhasalsotakentheexemptionunderFRS101availableinrespectoftherequirementsofparagraphs45(b)and46to52

ofIFRS2(Share-basedPayment)inrespectofGroupsettledshare-basedpaymentsastheConsolidatedFinancialStatementsofthe

Groupincludetheequivalentdisclosures.

GOING CONCERN

Thefinancialstatementshavebeenpreparedonagoingconcernbasis.TheabilityoftheCompanytocontinueasagoingconcernis

contingentontheongoingviabilityoftheGroup.TheDirectorshaveconsideredthebusinessactivities,aswellastheprincipalrisks,the

othermattersdiscussedinconnectionwiththeviabilitystatement,anduncertaintiesfacedbythebusiness.Basedonthisinformation,

andtheGroup’stradingandcashflowforecasts,theDirectorsaresatisfiedthattheGroupwillmaintainanadequatelevelofresources

tobeabletooperateduringtheperiodunderreview.Refertonote2.1oftheConsolidatedFinancialStatementsforfurtherinformation.

DISTRIBUTABLE RESERVES

Whenmakingadistributiontoshareholders,theDirectorsdeterminetheprofitsavailablefordistributionbyreferencetoguidanceon

realisedanddistributableprofitsunderCompaniesAct2006issuedbytheInstituteofCharteredAccountantsinEnglandandWales.

INVESTMENTS

Investmentsarestatedatcostlessanyprovisionforimpairment.

SHARE-BASED PAYMENTS

TheCompanyprovidesbenefitstoemployeesintheformofshare-basedpaymenttransactions,wherebyemployeesrenderservices

asconsiderationinexchangeforequityinstruments(‘equity-settledtransactions’).Refertonote2.25oftheConsolidatedFinancial

Statementsforfurtherinformation.

DIVIDENDS

FinaldividendsarerecordedinthefinancialstatementsintheperiodinwhichtheyareapprovedbytheCompany’sshareholders.

Interimdividendsarerecordedintheperiodinwhichtheyareapprovedandpaid.

210 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024

2. Accounting policies continued

SHARE BUYBACK

WheretheCompanypurchasesanyofitsownequityinstruments,forexample,pursuanttothesharebuybackprogramme,theconsideration

paid,includinganydirectlyattributableincrementalcosts,isdeductedfromequityattributabletotheownersoftheCompany.The

repurchasedsharesarerecognisedastreasurysharesuntilthesharesarecancelled.Theprogrammeconcludedon19December2023.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

Thefollowingjudgementhashadthemostsignificanteffectonamountsrecognisedinthefinancialstatements:

Carrying value of investments

TheCompanyassessesateachreportingdatewhetherthereisanindicationthatitsinvestmentmaybeimpaired.Ifanyindicationexists,

theCompanyestimatestheinvestment’srecoverableamount.Theinvestment’srecoverableamountisthehigherofitsfairvalueless

costsofdisposalanditsvalueinuse.Animpairmentispresentiftherecoverableamountislessthanthecarryingvalueoftheasset.In

assessinganinvestment’srecoverableamountusingavalueinusecalculation,estimatedfuturecashflowsarediscountedtotheirpresent

valueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandfuturecashflowsarethen

extendedintoperpetuityusinglong-termgrowthrates.

UK REGISTERED SUBSIDIARIES EXEMPT FROM AUDIT

AirwairPropertyLimited,awhollyownedsubsidiary,isexemptfromtheCompaniesAct2006requirementsrelatingtotheauditoftheir

individualfinancialstatementsbyvirtueofSection479AoftheCompaniesAct,asthisCompanyhasprovidedaguaranteeforAirwair

PropertyLimitedunderSection479CoftheCompaniesAct.

3. Staff costs

OtherthantheDirectors,theCompanyhadnoemployeesduringtheyear(FY23:none).DetailsofDirectors’remunerationcanbefound

intheRemunerationReportonpages119to133oftheAnnualReport.

4. Auditors’ remuneration

TheCompanyhasincurredauditfeesof£21,600(FY23:£20,000)fortheyear.

5. Dividends

DetailsinrespectofdividendsproposedandpaidduringtheyearbytheCompanyareincludedinnote10totheConsolidated

FinancialStatements.

6. Investments

FY24

£m

FY23

£m

At1April2023 1,413.4 1,413.4

Acquisitions – –

At 31 March 2024

1,413.4 1,413.4

INVESTMENT IMPAIRMENT ASSESSMENT

TheCompany’sinvestmentisanon-financialassetandrequiredtobereviewedforimpairmentindicatorseachyear-enddate.Ifan

indicatorofimpairmentexists,theassetisrequiredtobetestedforimpairmentbyestimatingitsrecoverableamount.Anasset’s

recoverableamountisthehigherofitsfairvaluelesscostsofdisposalanditsvalueinuse.Animpairmentispresentiftherecoverable

amountislessthanthecarryingvalueoftheasset.

AnappropriatechecktobeginwithperIAS36isassessingwhetherthecarryingamountoftheCompany’snetassetsishigherthan

themarketcapitalisation.Managementhasreviewedthesharepriceasat31March2024andtheaveragesharepriceoveravariety

ofprecedingtimeperiodstoexaminetheaveragemarketcapitalisationforcomparisontoDr.Martensplc’snetassets.Itisrelevantto

considerthevolatilityofthesharepriceoverrecentyearswheninterpretingacompany’smarketcapitalisation.Wherethereisvolatility,

takingapointintimemeasuremaybemisleading,asmarketsentimentfluctuationscanresultinsignificantpointintimechangesthat

arenotnecessarilyreflectiveofthetruevalueofabusiness.Itisalsonotedthatstockmarketmovementsrecentlyarenotuniqueto

Dr.Martensonly,andsignificantmacroeconomicandgeopoliticaleventshaveimpactedmanycompanies,againpotentiallyinaccurately

reflectingthetruevalueofthebusiness.Oversomeoftheperiodsreviewed,Dr.Martensplc’snetassetsexceedthemarketcapitalisation

andotherstheydidnot,thereforeshowingapotentialindicatorofimpairmentbutnotnecessarilyconcludingthattheinvestmentwas

impaired.Asthisreviewshowedapotentialimpairmentindicator,managementdecidedtorunatestforimpairment.

Theinvestment’srecoverableamountwasdeemedtobemorethanit’scarryingamountandhencenochargewasmadeinthecurrent

year(FY23:£nil).

FINANCIAL STATEMENTS

211DR. MARTENS PLC ANNUAL REPORT 2024

6. Investments continued

Judgements, assumptions and estimates

TheresultsoftheCompany’simpairmenttestsaredependentuponestimatesandjudgementsmadebymanagement.Therecoverable

amountoftheCompany’sinvestmentisestimatedusingavalueinusecalculation.Thevalueinusecalculationusescashflowforecasts

basedonfinancialprojectionsreviewedbytheBoardcoveringafive-yearperiod(pre-perpetuity).Theforecastsarebasedonannual

budgetsandstrategicprojectionsrepresentingthebestestimateoffutureperformance.Managementconsidersforecastingoverthis

periodtoappropriatelyreflectthebusinesscycleoftheGroup.Thesecashflowsareconsistentwiththoseusedtoreviewgoingconcern

andviability,however,arerequiredbyIAS36tobeadjustedforusewithinanimpairmentreviewtoexcludenewretaildevelopmentto

whichtheGroupisnotyetcommitted.

Operating cash flows

Themainassumptionswithintheforecastoperatingcashflowsincludetheachievementoffuturegrowthinecommerce,retailand

wholesalechannels,salespricesandvolumes(includingreferencetospecificcustomerrelationshipsandproductlines),rawmaterial

inputcosts,thecoststructureoftheGroup,theimpactofforeigncurrencyratesuponsellingpriceandcostrelationshipsandthelevels

ofcapitalexpenditurerequiredtosupporteachsaleschannel.

Futuresalesareestimatedtoincreaseonacompoundannualgrowthrate(CAGR)basisoverthe5yearspre-perpetuityfromFY24

reportedsalesby10.7%.TheCAGRisforecastedtobeachievedthroughgrowthassetoutinourcentralplanningassumptionsunderlying

ourmediumtermforecasts,thefirstthreeyearsofwhichformthebasisoftheassumptionsintheViabilityStatement.

ThevalueinusecalculationalsoincludesrepaymentoftheTermLoanBinFebruary2026perIAS36requirements,butinpracticalterms,

theloanisexpectedtoberefinancedin2026.

TheadjustmentsrequiredtoestimatevalueinuseresultinlowercashflowsthanthemethodusedforassessingtheGroup’sviabilityand

hencearenotconsideredlikelytooccur.

Pre-tax adjusted discount rates

Futurecashflowsarediscountedtopresentvalueusingapre-taxdiscountratederivedfromrisk-freeratesbasedonlong-termgovernment

bonds,adjustedforriskfactorssuchasregionandmarketriskintheterritoriesinwhichtheGroupoperatesandthetimevalueofmoney.

Consistentwiththe2019IFRSIASBStaffPaper,apost-taxdiscountrateandpost-taxcashflowsareusedasobservableinputs,andthenthe

pre-taxdiscountrateiscalculatedfromthistocomplywiththedisclosurerequirementsunderIAS36.Thepre-taxdiscountratefortheGroup

hasbeencalculatedtobe12.7%(FY23:12.3%).

Long-term growth rate

Toforecastbeyondthefive-yeardetailedcashflowsintoperpetuity,along-termaveragegrowthratehasbeenused.Thelong-termgrowth

rateappliedforGroupis2.2%(FY23:2.2%).Therateusedincludesaggregationofgeographicalforecastsincludedwithinindustryreports.

Sensitivity analysis

TheCompanyhasassessedthatthetwosignificantassumptionsusedwithinthevalueinusecalculationarepre-perpetuitysalesgrowth

andthepre-taxdiscountrateandpotentialchangesinthesehavebeensensitisedasfollows:

FY24

£m

Originalheadroom 262.8

Headroomusinga10%decreaseinforecastedsales

(150.7)

Headroomusinga10%increaseinforecastedsales

1,032.0

Headroomusinga1%ptdecreaseinpre-taxdiscountrate 483.0

Headroomusinga1%ptincreaseinpre-taxdiscountrate 83.4

Headroomcombininga10%decreaseinforecastedsalesanda1%ptincreaseinpre-taxdiscountrate

(359.2)

1. Thesesensitivitiesarebasedona+/-10%movementinsaleseachyearandintoperpetuity.Adecreaseinforecastsalesof-10%resultsinarevisedCAGRoverthe5years

pre-perpetuityfromFY24salesof8.4%,andanincreaseof10%resultsinarevisedCAGRof12.9%.

212 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

6. Investments continued

Adecreaseinforecastedsalesof-10%hasbeencalculatedforillustrativepurposesappliedeachyearandintoperpetuity.Thiswould

resultinthecarryingamountbeingabovetherecoverableamount.Therequireddifferencesintheforecastedcashflowsusedforthe

impairmentassessmentversusthoseusedforthepurposeoftheGroup’sgoingconcernandviabilityassessmentsresultindifferent

outputs,andthis-10%salessensitivityoutputslowertotalforecastedsalesinFY25versustheseverebutplausiblescenarioandis

consideredunlikely.Furthermore,theexclusionofnewretaildevelopmentasrequiredbyIAS36isnotinlinewithactualexpectedtrading

growth.Thereductioninforecastsalesthatwouldresultinthecarryingamountandtherecoverableamountbeingequalwouldbe-7.5%.

Anincreaseof1percentagepoint(1%pt)inthepre-taxdiscountrateof12.7%to13.7%hasbeencalculatedforillustrativepurposes

andwouldnotresultinthecarryingamountbeingabovetherecoverableamountandisalsonotconsideredlikelygiventhatthepre-tax

discountrateinFY23was12.3%andhencehasmovedlessthan0.5%ptssinceFY23.Thepre-taxdiscountratethatwouldresultinthe

carryingamountandtherecoverableamountbeingequalwouldbe14.2%.Thissensitivityhasbeenincludedtoprovideanillustration

shouldtheforecastedsalesdeclineby-10%andthepre-taxdiscountratealsoincreasesby1%pt.Thiswouldresultinthecarryingamount

beingabovetherecoverableamount.

AlistoftheCompany’sinvestmentsinsubsidiaryundertakingscanbefoundinnote13.

7. Debtors

FY24

£m

FY23

£m

Incometaxreceivable 0.1 –

Socialsecurityandothertaxes – –

Prepaymentsandaccruedincome 0.3 0.8

Amountsowedbysubsidiaryundertakings

2.7 0.9

3.1 1.7

1. Amountsowedbysubsidiaryundertakingsarenon-interestbearingtradingbalancesandarerepayableondemand.

IFRS9expectedcreditlosseshavebeenassessedasimmaterialinrelationtoallbalances.

8. Cash and cash equivalents

FY24

£m

FY23

£m

Cashandcashequivalents 0.1 0.2

9. Trade and other payables

FY24

£m

FY23

£m

Tradecreditors 0.1 0.1

Amountsduetosubsidiaryundertakings

0.2 10.3

Accrualsanddeferredincome 0.9 0.1

1.2 10.5

1. Amountsowedtosubsidiaryundertakingsarenon-interestbearingtradingbalancesandarerepayableondemand.

FINANCIAL STATEMENTS

213DR. MARTENS PLC ANNUAL REPORT 2024

10. Ordinary share capital

FY24

No.

FY24

£m

FY23

No.

FY23

£m

Authorised, called up and fully paid

Ordinarysharesof£0.01each

961,878,608 9.6 1,000,793,898 10.0

Themovementsintheordinarysharecapitalduringtheyearsended31March2024and31March2023wereasfollows:

FY24 FY24 FY23 FY23

no.

Ordinary

share capital

£m

Shares

no.

Ordinary

sharecapital

£m

At1April 1,000,793,898 10.0 1,000,222,700 10.0

Sharesissued 953,845 – 571,198 –

Repurchaseandcancellationofordinarysharecapital (39,869,135) (0.4) – –

At 31 March

961,878,608 9.6 1,000,793,898 10.0

ThecostofsharespurchasedbytheSIPTrustsisoffsetagainsttheprofitandlossaccount,astheamountspaidreducetheprofits

availablefordistributionbytheCompany.

11. Treasury shares

ThemovementsintreasurysharesheldbytheCompanyduringtheyearended31March2024wereasfollows:

FY24

No.

FY24

£m

FY23

No.

FY23

£m

At1April 110,153 – 16,925 –

Repurchaseofsharesforcancellation 39,869,135 50.0 – –

Cancellationofshares (39,869,135) (50.0) – –

Sharesissuedforshareschemes 284,770 – 93,228 –

At 31 March

394,923 – 110,153 –

On14July2023Dr.Martensplcannouncedasharebuybackprogramme.Treasurysharesexistedduringtheyearasaresultofthe

timingdelaybetweentherepurchaseofsharesunderthisprogrammeandthesubsequentcancellationoftheseshares.Theprogramme

concludedon19December2023.

12. Reserves

Reserve Description and purpose

Ordinarysharecapital Nominalvalueofsubscribedshares.

Treasuryshares ThisreserverelatestosharesheldbySIPTrustsas‘treasuryshares’.ThesharesheldbytheSIPTrustswere

issueddirectlytotheTrustsinordertosatisfyoutstandingemployeeshareoptionsandpotentialawards

undertheemployeeshareincentiveschemes.TheCompanyissued284,770sharesdirectlytotheTrusts

duringtheyearandheld394,923asat31March2024(31March2023:110,153).Thisreservewaspreviously

referredtoas‘capitalreserve–ownshares’.Thisreservealsoincludedtreasurysharesrepurchasedbutnot

yetcancelled,pursuanttothesharebuybackprogramme,whichconcludedduringFY24.

Capitalredemptionreserve Anon-distributablereserveintowhichamountsaretransferredfollowingtheredemptionorpurchaseof

ownshares.Thereservewascreatedinordertoensuresufficientdistributablereserveswereavailable

forthepurposeofredeemingpreferencesharesintheprioryears.

Retainedearnings Torecognisetheprofitorloss,allothernetgainsandlossesandtransactionswithowners(e.g.dividends)

notrecognisedelsewhere,andthevalueofequity-settledshare-basedawardsprovidedtoExecutive

Directorsandotherseniorexecutivesaspartoftheirremuneration(refertotheDirectors’Remuneration

Reportonpages119to133oftheAnnualReportforfurtherdetails).

214 DR. MARTENS PLC ANNUAL REPORT 2024

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS

FORTHEYEARENDED31MARCH2024CONTINUED

13. Subsidiary undertakings

Theregisteredaddressandprincipalplaceofbusinessofeachsubsidiaryundertakingareshowninthefootnotesbelowthetable.The

financialperformanceandfinancialpositionoftheseundertakingshavebeenconsolidatedintheConsolidatedFinancialStatements.

Name Country of registration Class of share capital held

Nature of

investment

Nature of businessDirect Indirect

Airwair(1994)Limited

EnglandandWales Ordinary – 100% Managementcompany

Airwair(1996)Limited

EnglandandWales Ordinary – 100% Managementcompany

AirwairInternationalLimited

EnglandandWales Ordinary – 100% Footwearretailanddistribution

AirwairLimited

EnglandandWales Ordinary – 100% Managementcompany

AirwairPropertyLimited

EnglandandWales Ordinary – 100% Propertyinvestment

AmpdebtcoLimited

EnglandandWales Ordinary 100% – Managementcompany

DMAirwairGermanyGmbH

Germany Ordinary – 100% Footwearretailanddistribution

DMAirwairSwedenAB

Sweden Ordinary – 100% Footwearretailanddistribution

Dr.MartensAirwair(Ireland)Limited

RepublicofIreland Ordinary – 100% Footwearretailanddistribution

Dr.MartensAirwairTrading(Zhuhai)

CompanyLimited*

China Ordinary – 100% Manufacturingsupport

Dr.MartensAirwairAustriaGmbH

Austria Ordinary – 100% Footwearretailanddistribution

DrMartensAirwairBelgiumSA

Belgium Ordinary – 100% Footwearretailanddistribution

Dr.MartensAirwairCanadaInc.

Canada Capitalofnoparvalue – 100% Footwearretailanddistribution

DrMartensAirwairFranceSAS

France Ordinary – 100% Footwearretailanddistribution

DrMartensAirwairGroupLimited

EnglandandWales Ordinary – 100% Managementcompany

Dr.MartensAirwairHongKongLimited

HongKongSAR Ordinary – 100% Footwearretailanddistribution

Dr.MartensAirwairJapanK.K.

Japan Ordinary – 100% Footwearretailanddistribution

Dr.MartensAirwairKoreaLimited

Korea Ordinary – 100% Footwearretailanddistribution

Dr.MartensAirwairSpainS.L.U.

Spain Ordinary – 100% Footwearretailanddistribution

Dr.MartensAirwairUSALLC

USA Capitalofnoparvalue – 100% Footwearretailanddistribution

DrMartensAirwairWholesaleLimited

EnglandandWales Ordinary – 100% Footwearretailanddistribution

DrMartensAirwairItalyS.R.L.

Italy Ordinary – 100% Footwearretailanddistribution

DrMartensAirwairNetherlandsB.V.

Netherlands Ordinary – 100% Footwearretailanddistribution

GFMGmbHTrademarks

Germany Ordinary – 50% Trademarkregistration

ShanghaiAirwairTradingLimited*

China Ordinary – 100% Footwearretailanddistribution

Dr.MartensAirwairPolandZ.o.o.

Poland Ordinary – 100% Footwearretailanddistribution

Dr.MartensAirwairDenmarkApS

Denmark Ordinary – 100% Footwearretailanddistribution

Dr.MartensAirwairVietnamCompany

Limited

Vietnam Ordinary – 100% Footwearretailanddistribution

DrMartensAirwairLimited

EnglandandWales Ordinary – 100% Dormant

Dr.MartensSports&LeisureLimited

EnglandandWales Ordinary – 100% Dormant

Dr.MartensAirwairSingaporePTELtd

Singapore Ordinary – 100% Non-trading

DrMartensAirwair&Co.Limited

EnglandandWales Ordinary – 100% Dormant

Dr.MartensDept.StoreLimited

EnglandandWales Ordinary – 100% Dormant

* Thefinancialyearofthisentityendson31Decemberinlinewithlocalrequirements.

1. Cobb’sLane,Wollaston,Northamptonshire,England,NN297SW.

2. 28JamestownRoad,Camden,London,England,NW17BY.

3. 16192CoastalHwy,Lewes,Delaware19958,UnitedStates.

4. No.04B,F16.SeatB,No2021,JiuzhouAvenueWest,Zhuhai519000,GuangdongProvince,China.

5. Unit2306-11,23F,SunLifeTower,TheGatewayTower5,HarbourCity,15CantonRoad,TsimShaTsui,HongKong.

6. 14/F,Room1,2,SBTower,318Dosan-daero,Gangnam-gu,Seoul,RepublicofKorea.

7. 5-2-28Jingumae,Shibuya,Tokyo,Japan150-0001.

8. AvenueduPort86C,Box204,1000Brussels,Belgium.

9. 5,CitéTrévise75009Paris,France.

10.Herikerbergweg238,LunaArena,1101CMAmsterdam,Netherlands.

11.Seeshaupt,LandkreisWeilheim-Schongau,Germany.Note:thisentityisequityaccountednotconsolidated.

12.TMFGroupGroundFloor,TwoDocklandCentral,GuildSt,NorthDock,Dublin,RepublicofIreland,D01K2C5.

13.Wagnerstr.1A,40212Düsseldorf,Germany.

14.Blekingegatan48,11662Stockholm,Sweden.

15.ViaMorimondo26–20143Milano,Italy.

16.Room1610-11,1612,Level16,TowerA,THREEITC,No.183HongqiaoRoad,Xuhui,Shanghai,China.

17.C/PrincipedeVergara,1124APlanta28002,Madrid,Spain.

18.77RobinsonRoad,13-00Robinson77,Singapore068896.

19.221-451DundasStreetWest,Toronto,Ontario,M5T1G8,Canada.

20.Rondo,Daszyńskiego2B,00-843Warsaw,Poland.

21.H.C.AndersensBoulevard38,3.Th,1553,København,1553Langebro,Denmark.

22.Teinfaltstraße8/4,1010Vienna,Austria.

23.Level6&7,FriendshipTower,No.31LeDuanStreet,BenNgheWard,District1,HoChiMinhCity,Vietnam.

FINANCIAL STATEMENTS

215DR. MARTENS PLC ANNUAL REPORT 2024

ADDITIONAL

INFORMATION

Five-year financial summary (unaudited) 217

First half/second half analysis (unaudited) 219

Glossary and Alternative

Performance Measures (APMs) 220

Shareholder information 222

Company information IBC

In this section:

216 DR. MARTENS PLC ANNUAL REPORT 2024

FY24

£m

FY23

£m

FY22

£m

FY21

£m

FY20

£m

Revenue:

Ecommerce 276.3 279.0 262.4 235.4 136.4

Retail 256.8 241.7 185.6 99.7 165.2

DTC 533.1 520.7 448.0 335.1 301.6

Wholesale

344.0 479.6 460.3 4 37.9 370.6

877.1 1,000.3 908.3 773.0 672.2

Grossprofit 575.2 618.1 578.8 470.5 401.5

Operatingexpenses (377.7) (373.1) (315.8) (247.6) (217.0)

EBITDA

197.5 245.0 263.0 222.9 184.5

Profit before tax and exceptional items 93.0 159.4 214.3 150.2 113.0

Profit before tax

93.0 159.4 214.3 69.7 101.0

Taxexpense (23.8) (30.5) (33.1) (35.0) (26.2)

Profit after tax 69.2 128.9 181.2 34.7 74.8

Earnings per share

Basic 7.0p 12.9p 18.1p 3.5p

Diluted 7.0p 12.9p 18.1p 3.5p

Keystatistics:

Pairssold(m) 11.5 13.8 14.1 12.7 11.1

No. of stores

239 204 158 135 122

DTCmix% 61% 52% 49% 43% 45%

Grossmargin%

65.6% 61.8% 63.7% 60.9% 59.7%

EBITDA%

22.5% 24.5% 29.0% 28.8% 27.4%

1. Resultsfortheyearended31March2021havebeenretrospectivelyrestatedinrelationtoachangeinaccountingpolicyforthetreatmentofcloud-basedsoftware.

Thisresultedin£nilimpactoncash.

2. AlternativePerformanceMeasure‘APM’asdefinedintheGlossaryonpages220and221.

3. Postexceptionalitems.

4. Ownstoresonstreetsandmallsoperatedunderarm’slengthleaseholdarrangements.

5. Wholesalerevenueincludingdistributorcustomers.

ADDITIONAL INFORMATION

217DR. MARTENS PLC ANNUAL REPORT 2024

FIVE-YEAR FINANCIAL SUMMARY (UNAUDITED)

FORTHEYEARENDED31MARCH2024

FY24

£m

FY23

£m

FY22

£m

FY21

£m

FY20

£m

Revenuebyregion:

EMEA 431.8 443.0 398.5 335.6 287.9

Americas 325.8 428.2 382.7 295.8 252.2

APAC 119.5 129.1 1 2 7.1 141.6 132.1

877.1 1,000.3 908.3 773.0 672.2

Revenuemix:

EMEA% 49% 44% 44% 44% 43%

Americas% 37% 43% 42% 38% 37%

APAC% 14% 13% 14% 18% 20%

EBITDA

byregion:

EMEA 140.8 146.1 143.8 115.3 92.4

Americas 64.4 100.1 120.0 91.9 75.4

APAC 31.7 33.8 32.6 39.7 35.5

Groupsupportcosts (39.4) (35.0) (33.4) (24.0) (18.8)

197.5 245.0 263.0 222.9 184.5

EBITDA%

byregion:

EMEA 32.6% 33.0% 36.1% 34.4% 32.1%

Americas 19.8% 23.4% 31.4% 31.1% 29.9%

APAC 26.5% 26.2% 25.6% 28.0% 26.9%

22.5% 24.5% 29.0% 28.8% 27.4%

1. Resultsfortheyearended31March2021havebeenretrospectivelyrestatedinrelationtoachangeinaccountingpolicyforthetreatmentofcloud-basedsoftware.

Thisresultedin£nilimpactoncash.

2. AlternativePerformanceMeasure‘APM’asdefinedintheGlossaryonpages220and221.

218 DR. MARTENS PLC ANNUAL REPORT 2024

FIVE-YEAR FINANCIAL SUMMARY (UNAUDITED)

FORTHEYEARENDED31MARCH2024CONTINUED

H1 H2 FY

Unaudited

FY24

£m

Unaudited

FY23

£m

Variance

Unaudited

FY24

£m

Unaudited

FY23

£m

Variance

Audited

FY24

£m

Audited

FY23

£m

Variance

Revenuebychannel:

Ecommerce 91.7 88.8 3% 184.6 190.2 -3% 276.3 279.0 -1%

Retail 104.7 91.0 15% 152.1 150.7 1% 256.8 241.7 6%

DTC 196.4 179.8 9% 336.7 340.9 -1% 533.1 520.7 2%

Wholesale

199.4 238.8 -16% 144.6 240.8 -40% 344.0 479.6 -28%

395.8 418.6 -5% 481.3 581.7 -17% 87 7.1 1,000.3 -12%

Grossprofit 254.9 257.8 -1% 320.3 360.3 -11% 575.2 618.1 -7%

EBITDA

77.6 88.8 -13% 119.9 156.2 -23% 197.5 245.0 -19%

Profitbeforetax

25.8 57.9 -55% 67. 2 101.5 -34% 93.0 159.4 -42%

Taxexpense (6.8) (13.2) -48% (17.0) (17. 3) -2% (23.8) (30.5) -22%

Profitaftertax 19.0 44.7 -57% 50.2 84.2 -40% 69.2 128.9 -46%

Earningspershare

Basic 1.9p 4.5p -58% 5.1p 8.4p -39% 7.0p 12.9p -46%

Diluted 1.9p 4.5p -58% 5.1p 8.4p -39% 7.0p 12.9p -46%

Keystatistics:

Pairssold(m) 5.7 6.3 -10% 5.8 7.5 -23% 11.5 13.8 -17%

No. of stores

225 174 29% 239 204 17% 239 204 17%

DTCmix% 50% 43% +7pts 70% 59% +11pts 61% 52% +9pts

Grossmargin%

64.4% 61.6% +2.8pts 66.5% 61.9% +4.6pts 65.6% 61.8% +3.8pts

EBITDA%

19.6% 21.2% -1.6pts 24.9% 26.9% -2.0pts 22.5% 24.5% -2.0pts

Revenuebyregion:

EMEA 194.2 179.0 8% 237.6 264.0 -10% 431.8 443.0 -3%

Americas 147.7 179.7 -18% 178.1 248.5 -28% 325.8 428.2 -24%

APAC 53.9 59.9 -10% 65.6 69.2 -5% 119.5 129.1 -7%

395.8 418.6 -5% 481.3 581.7 -17% 87 7.1 1,000.3 -12%

Revenuemix:

EMEA% 49% 43% +6pts 49% 45% +4pts 49% 44% +5pts

Americas% 37% 43% -6pts 37% 43% -6pts 37% 43% -6pts

APAC% 14% 14% – 14% 12% +2pts 14% 13% +1pts

EBITDA

byregion:

EMEA 55.8 52.8 6% 85.0 93.3 -9% 140.8 146.1 -4%

Americas 28.6 41.4 -31% 35.8 58.7 -39% 64.4 100.1 -36%

APAC 12.2 13.1 -7% 19.5 20.7 -6% 31.7 33.8 -6%

Supportcosts (19.0) (18.5) 3% (20.4) (16.5) 24% (39.4) (35.0) 13%

77.6 88.8 -13% 119.9 156.2 -23% 197.5 245.0 -19%

EBITDA%

EMEA 28.7% 29.5% -0.8pts 35.8% 35.3% +0.5pts 32.6% 33.0% -0.4pts

Americas 19.4% 23.0% -3.6pts 20.1% 23.6% -3.5pts 19.8% 23.4% -3.6pts

APAC 22.6% 21.9% +0.7pts 29.7% 29.9% -0.2pts 26.5% 26.2% +0.3pts

Total

19.6% 21.2% -1.6pts 24.9% 26.9% -2.0pts 22.5% 24.5% -2.0pts

1. AlternativePerformanceMeasure‘APM’asdefinedintheGlossaryonpages220and221.

2. Postexceptionalitems.

3. Ownstoresonstreetsandmallsoperatedunderarm’slengthleaseholdarrangements.

4. Wholesalerevenueincludingdistributorcustomers.

ADDITIONAL INFORMATION

219DR. MARTENS PLC ANNUAL REPORT 2024

FIRST HALF/SECOND HALF ANALYSIS (UNAUDITED)

FORTHEYEARENDED31MARCH2024

TheGrouptracksanumberofkeyperformanceindicators(KPIs)includingAlternativePerformanceMeasures(APMs)inmanagingits

business,whicharenotdefinedorspecifiedundertherequirementsofIFRSbecausetheyexcludeamountsthatareincludedin,orinclude

amountsthatareexcludedfrom,themostdirectlycomparablemeasurescalculatedandpresentedinaccordancewithIFRSorare

calculatedusingfinancialmeasuresthatarenotcalculatedinaccordancewithIFRS.

TheGroupbelievesthattheseAPMs,whicharenotconsideredtobeasubstitutefororsuperiortoIFRSmeasures,providestakeholders

withadditionalhelpfulinformationontheperformanceofthebusiness.TheseAPMsareconsistentwithhowthebusinessperformanceis

plannedandreportedwithintheinternalmanagementreportingtotheBoard.

TheGroupisnolongerpresentingunderlyingearningspershare.Inpreviousyearsthismetricwasintroducedtopresentearningsper

shareexclusiveofprioryeartaxadjustmentsinrelationtoexceptionalcosts.TheGrouprecognised£nilprioryeartaxadjustmentsin

relationtoexceptionalcostsinFY24andFY23;assuchthisadjustedmeasureisnolongerrelevant.

TheseAPMsshouldbeviewedassupplementalto,butnotasasubstitutefor,measurespresentedintheConsolidatedFinancial

StatementsrelatingtotheGroup,whicharepreparedinaccordancewithIFRS.TheGroupbelievesthattheseAPMsareusefulindicators

ofitsperformance.However,theymaynotbecomparablewithsimilarlytitledmeasuresreportedbyothercompaniesduetodifferences

inthewaytheyarecalculated.

Metric Definition Rationale

APM KPI

Revenue Revenueperfinancialstatements. Helpsevaluategrowthtrends,establish

budgetsandassessoperationalperformance

andefficiencies.

No Yes

Revenueby

geographical

market

RevenuepertheGroup’sgeographicalsegments. Helpsevaluategrowthtrends,establish

budgetsandassessoperationalperformance

andefficiencies.

No Yes

Revenue:EMEA

Revenue:

Americas

Revenue:APAC

Revenueby

channel

Helpsevaluategrowthtrends,establish

budgetsandassessoperationalperformance

andefficiencies.

No Yes

Revenue:

ecommerce

RevenuefromtheGroup’secommerceplatforms.

Revenue:retail RevenuefromtheGroup’sownstores(including

concessions).

Revenue:DTC RevenuefromtheGroup’sdirect-to-consumer

(DTC)channel(=ecommerceplusretailrevenue).

Revenue:

wholesale

RevenuefromtheGroup’sbusiness-to-business

channel,revenuetowholesalecustomers,

distributorsandfranchisees.

Constant

currencybasis

Non-GBPresultswiththesameforeignexchange

rateappliedtothecurrentandpriorperiods,based

onthecurrentbudgetedrates.

PresentingresultsoftheGroupexcluding

foreignexchangevolatility.

No No

Grossmargin Revenuelesscostofsales(rawmaterialsand

consumables).

CostofsalesisdisclosedintheConsolidated

StatementofProfitorLoss.

Helpsevaluategrowthtrends,establish

budgetsandassessoperationalperformance

andefficiencies.

No No

Grossmargin% Grossmargindividedbyrevenue. Helpsevaluategrowthtrends,establish

budgetsandassessoperationalperformance

andefficiencies.

Yes No

Opex Sellingandadministrativeexpensesandfinance

expenseslessdepreciation,amortisation,foreign

exchangegains/(losses)andfinanceexpense.

Opexisusedtoreconcilebetweengross

marginandEBITDA.

Yes No

220 DR. MARTENS PLC ANNUAL REPORT 2024

GLOSSARY AND ALTERNATIVE PERFORMANCE MEASURES (APMS)

Metric Definition Rationale

APM KPI

EBITDA Profit/(loss)fortheyearbeforeincometaxexpense,

financingexpense,foreignexchangegains/(losses),

depreciationofright-of-useassets,depreciation,

amortisationandexceptionalitems.

Exceptionalitemsarematerialitemsthatare

consideredexceptionalinnaturebyvirtueof

theirsizeand/orincidence.

EBITDAisusedasakeyprofitmeasure

becauseitshowstheresultsofnormal,core

operationsexclusiveofincomeorchargesthat

arenotconsideredtorepresenttheunderlying

operationalperformance.

Yes Yes

EBITDA% EBITDAdividedbyrevenue. Helpsevaluategrowthtrends,establish

budgetsandassessoperationalperformance

andefficiencies.

Yes Yes

EBIT Profit/(loss)fortheyearbeforeincometaxexpense,

financingexpense,foreignexchangegains/(losses)

andexceptionalitems.

Exceptionalitemsarematerialitemsthatare

consideredexceptionalinnaturebyvirtueof

theirsizeand/orincidence.

EBITisusedasakeyprofitmeasurebecause

itshowstheresultsofnormal,coreoperations

exclusiveofincomeorchargesthatarenot

consideredtorepresenttheunderlying

operationalperformance.

Yes No

Operating

cashflow

EBITDAlesschangeinnetworkingcapital,

share-basedpaymentexpenseandcapital

expenditure.

Operatingcashflowisusedasatradingcash

generationmeasurebecauseitshowstheresults

ofnormal,coreoperationsexclusiveofincome

orchargesthatarenotconsideredtorepresent

theunderlyingoperationalperformance.

Yes Yes

Operatingcash

flowconversion

OperatingcashflowdividedbyEBITDA. Usedtoevaluatetheefficiencyofacompany’s

operationsanditsabilitytoemployits

earningstowardrepaymentofdebt,capital

expenditureandworkingcapitalrequirements.

Yes Yes

Freecashflow Operatingcashflowlesscashoutflowsfor

exceptionalitems,netinterestpaid,taxation

andleaseliabilities.

Freecashflowisusedasanetcashflow

measurefortheGroupbeforechangesin

thedebt/capitalstructure.

Yes No

Netdebt Netdebtiscalculatedbysubtractingcashandcash

equivalentsfrombankloansandleaseliabilities.

Toaidtheunderstandingofthereader

ofthefinancialstatementsinrespectof

liabilitiesowed.

Yes No

Profitbeforetax

(beforeFX

charge)

Profitbeforetaxandbeforeforeignexchange

gains/losses.

Helpsevaluategrowthtrends,establish

budgetsandassessoperationalperformance

andefficiencies.

Yes No

Earningsper

share

IFRSmeasure. Thisindicateshowmuchmoneyacompany

makesforeachshareofitsstock,andisa

widelyusedmetrictoestimatecompanyvalue.

No Yes

Basicearnings

pershare

Thecalculationofearningsperordinaryshareis

basedonearningsaftertaxandtheweighted

averagenumberofordinarysharesinissueduring

theperiod/year.

AhigherEPSindicatesgreatervaluebecause

investorswillpaymoreforacompany’sshares

iftheythinkthecompanyhashigherprofits

relativetoitsshareprice.

No Yes

Dilutedearnings

pershare

Calculatedbydividingtheprofitattributableto

ordinaryequityholdersoftheparentbythe

weightedaveragenumberofordinarysharesin

issueduringtheperiod/yearplustheweighted

averagenumberofordinarysharesthatwouldhave

beenissuedontheconversionofalldilutive

potentialordinarysharesintoordinaryshares.

UsedtogaugethequalityofEPSifall

convertiblesecuritieswereexercised.

No No

Ecommerce

mix%

Ecommercerevenueasapercentage

oftotalrevenue.

Helpsevaluateprogresstowards

strategicobjectives.

No Yes

DTCmix% DTCrevenueasapercentageoftotalrevenue. Helpsevaluateprogresstowards

strategicobjectives.

No Yes

No. of stores Numberof‘own’storesopenintheGroup. Helpsevaluateprogresstowards

strategicobjectives.

No Yes

Pairs Pairsoffootwearsoldduringaperiod. Usedtoshowvolumesandgrowths

intheGroup.

No Yes

ADDITIONAL INFORMATION

221DR. MARTENS PLC ANNUAL REPORT 2024

Shareholders’ enquiries

Anyshareholderwithenquiriesrelatingtotheirshareholding

should,inthefirstinstance,contactourregistrar,Equiniti,using

thetelephonenumberoraddressonthispage.

Electronic shareholder communications

Shareholderscanelecttoreceivecommunicationsbyemaileach

timetheCompanydistributesdocuments,insteadofreceiving

papercopies.ThiscanbedonebyregisteringviaShareviewatno

extracost,atwww.shareview.co.uk.Intheeventthatyouchange

yourmindorrequireapaperversionofanydocumentinthefuture,

pleasecontacttheregistrar.

AccesstoShareviewallowsshareholderstoviewdetailsabouttheir

holdings,submitaproxyvoteforshareholdermeetingsandnotify

achangeofaddress.Inadditiontothis,shareholdershavethe

opportunitytocompletedividendmandatesonlinewhichfacilitates

thepaymentofdividendsdirectlyintoanominatedaccount.

Financial calendar

Announcementoffullyearresults 30May2024

Ex-dividenddateforfinaldividend 29August2024

Recorddateforfinaldividend 30August2024

AnnualGeneralMeeting 11July2024

Paymentdateforfinaldividend 1October2024

Announcementofhalfyearresults 28November2024

Shareholder security

Shareholdersshouldbeverywaryofanyunsolicitedadvice,offersto

buysharesatadiscount,oroffersoffreecompanyreports.Theseare

typicallyfrompurported‘brokers’whotargetUKshareholderswith

offerstosellthemwhatoftenturnouttobeworthlessorhigh-risk

sharesinUSAorUKinvestments.Theseoperationsarecommonly

knownasboilerrooms.Ifyoureceiveanyunsolicitedinvestment

advice,getthecorrectnameofthepersonandorganisation,and

checkthattheyareproperlyauthorisedbytheFCAbeforegetting

involved.Thiscanbedonebyvisitingwww.fca.org.uk/register.

Ifyouthinkyouhavebeenapproachedbyanunauthorisedfirm,

youshouldcontacttheFCAconsumerhelplineon08001116768.

Moredetailedinformationandguidanceforshareholderson

howtoavoidscamscanbefoundontheFCA’swebsiteat

www.fca.org.uk/consumers/protect-yourself/unauthorised-firms.

AGM

TheAGMwillbeheldatHolidayInnLondon-CamdenLock,

30JamestownRoad,Camden,NW17BYat9:30amonThursday

11July2024.Shareholdersarestronglyencouragednottoattend

themeetinginpersonandtosendanyquestionstheymayhave

fortheBoard,thatrelatetothebusinessofthemeeting,inadvance

byemailtocompany.secretariat@drmartens.com.Questions

relatingtothebusinessofthemeetingcanbeemailedtoandwill

berespondedtoinfull.Wewillalsopublishallanswerstoany

questionssubmittedthatrelatetothebusinessofthemeeting,

togetherwiththefullvotingresultsforthe2024AGM,on

www.drmartensplc.comshortlyafterthemeeting.

Website

TheinvestorsectionofDr.Martens’corporatewebsite,

www.drmartensplc.com,containsawiderangeofinformation

includingregulatorynews,resultsannouncements,shareprice

informationandinformationaboutourBoardandCommittees.

Itisalsopossibletosignuptoreceiveregulatorynewsrelating

toDr.Martensplcalertsbyemailat

www.drmartensplc.com/investors/regulatory-news/rns-alerts/.

Our privacy policy

Ourprivacypolicy,whichsetsouthowDr.Martenscollects

andusespersonalinformation,canbefoundat

www.drmartensplc.com/privacy-policy.

Analysis of share register

ORDINARY SHARES

Asat31March2024,theCompanyhad493registeredholdersofordinaryshares.Theirshareholdingsareanalysedbelow:

Balance ranges

Total number

of holdings

Percentage

of holders

Total number

of shares

Percentage

issued capital

1-500 63 12.78% 10,315 <0.01%

501-1000 25 5.07% 19,413 <0.01%

1001-2000 22 4.46% 33,447 <0.01%

2001-5000 35 7. 10% 114,688 0.01%

5001-10000 25 5.07% 181,742 0.02%

10001-100000 132 26.77% 5,417, 257 0.56%

100001-1000000 112 22.72% 36,380,565 3.78%

1000001-9999999999 79 16.02% 919,721,181 95.62%

Totals 493 100.00% 961,878,608 100.00%

222 DR. MARTENS PLC ANNUAL REPORT 2024

SHAREHOLDER INFORMATION

Registered office

28JamestownRoad

Camden

London

NW17BY

Investor relations

investor.relations@drmartens.com

Registrar

Equiniti Limited

AspectHouse

SpencerRoad

Lancing

WestSussex

BN996DA

Tel:03713842030(fromtheUK)

Tel:+441214157047(fromoverseas)

Independent auditor

PricewaterhouseCoopers LLP

1EmbankmentPlace

London

WC2N6RH

Tel:+44(0)2075835000

Designed and produced by three thirty studio

www.threethirty.studio

Dr. Martens plc’s commitment to environmental issues is

reflected in this Annual Report, which has been printed on

Evolution Offset, manufactured from 100% recycled

post-consumer waste, FSC

and ISO 14001 certified material.

This document was printed by Principal Colour, accredited to

the ISO 14001 Environmental Management System with 99%

of dry waste diverted from landfill, minimising the impact of

printing on the environment.

The publication is CarbonNeutral